The New Zealand dollar weakened against the other major currencies in the Asian session on Friday, following the nation’s biggest dairy company Fonterra revising down its supply forecast.
Auckland-based Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, slashed its forecasts for dairy products over the coming year at its fortnightly Global Dairy Trade (GDT) auction.
The NZ Fonterra cut its 12-month forecast of whole milk powder offer volumes by 875 million metric tons.
Rate cut rumors have been impacting the kiwi in recent sessions. Some speculate that the RBNZ may cut its rate by 25 basis points to 3.25 percent in June.
Thursday, the NZ dollar rose 0.77 percent against the U.S. dollar, 0.64 percent against the yen, 0.33 percent against the euro and 0.63 percent against the aussie.
In the Asian trading today, the NZ dollar fell to 2-day lows of 0.7453 against the U.S. dollar, 88.94 against the yen and 1.5298 against the euro, from yesterday’s closing quotes of 0.7495, 89.31 and 1.5207, respectively. If the kiwi extends its downtrend, it is likely to find support around 0.71 against the greenback, 85.00 against the yen and 1.53 against the euro.
Against the Australian dollar, the kiwi edged down to 1.0798 from yesterday’s closing value of 1.0768. On the downside, 1.09 is seen as the next support level for the kiwi.
Looking ahead, Swiss PPI for April and U.K. construction output for March are slated for release in the European session.
In the New York session, Canada manufacturing sales data for March, U.S. industrial production for April and the University of Michigan’s preliminary U.S. consumer sentiment index for May are due.
The material has been provided by InstaForex Company – www.instaforex.com