The New Zealand Dollar see-sawed its way through trade yesterday, having opened at 0.6619. The Kiwi came under pressure touching 0.6592 on the back of NZIER Business confidence which reported a drop in the third quarter to its lowest level in nine years. The survey showed 30% of firms surveyed expected dire business conditions in NZ over the next year. The study shows firms are worried about Government policy, labour costs and availability of labour operating margins. These factors were key considerations for businesses when it came to assess general economic conditions.
The Kiwi managed to claw back losses as the day went on; unfortunately, the Greenback overshadowed and pulled the NZD back down to 0.6553 to start the NA session touching a two-week low. In other news, the Kiwi was unable to break 66c as the latest Global Dairy Trade (GDT) auction revealed the downtrend continues concluding with the GDT Price Index down 1.9% on the previous sale. The average price was US $2,901/ ton, compared with US $2,934/ ton two weeks ago. Some 41,981 tons of product were sold, up from 39,143 tons two weeks ago. Whole milk powder fell 1.2 % to US$2,753 a ton.