Investing.com - Financial Markets Worldwide

Forex - NZD/USD rebounds after milk powder flap

Published 08/05/2013, 09:48 PM
Updated 08/05/2013, 09:49 PM
NZD/USD
-
AUD/NZD
-
EUR/NZD
-
NZD/JPY
-

Investing.com - The New Zealand dollar rebounded against its U.S. rival during Tuesday’s Asian session a day after the kiwi was hounded by news of contaminated milk powder producer by dairy giant Fonterra.

In Asian trading Tuesday, NZD/USD rose 0.18% to 0.7837. The pair was likely to find support at 0.7732, the low of July 15 and resistance at 0.7982, the high of August 1.

The kiwi was plagued Monday by reports that New Zealand dairy exporter Fonterra found botulism bacteria in some of its products.

New Zealand Trade Minister Tim Groser said on Sunday that China has halted all milk powder imports from New Zealand and Australia following the news. Russia also joined China in halting imports of New Zealand milk powder and other countries are expected to follow suit until the situation is resolved,

Milk powder is one of New Zealand’s largest exports, accounting for 15% of the country’s GDP. The news comes at a tenuous time for the kiwi and the New Zealand economy because Chinese economic growth is slowing. China, the world’s second-largest economy, is one of New Zealand’s top export markets.

In U.S. economic news out Monday, the Institute for Supply Management said its services index climbed to 56 in July from 52.2 in June. Economists expected a July reading of 53. The new orders index rose to 57.7 from 50.8, but the employment index fell to 53.2 from 54.7. Readings above 50 indicate expansion.

Elsewhere, NZD/JPY fell 0.09% to 76.81 while EUR/NZD fell 0.14% to 1.6928. AUD/NZD fell 0.21% to 1.1392 as traders await news from the Reserve Bank of Australia meeting later Tuesday.


Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.