The New Zealand dollar rose on an improved forecast payout by Fonterra .
That spurred the currency higher against most of the other cross rates, reversing an overnight slide against the greenback as global markets reflected concern a weaker Chinese economy will weigh on global growth and demand for commodities, including dairy products and meat.
The kiwi fell to 62.43 US cents as at 8am in Wellington, from 62.63 cents late yesterday, and recovered to be trading at 62.51 cents after the Fonterra announcement. The trade-weighted index rose to 68.34 from 68.19 immediately before the Fonterra announcement.
Across the globe, commodity prices fell for a second day as traders were spooked by a weaker than expected manufacturing gauge of Chinese production yesterday.
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That weighed on commodity-linked assets such as the kiwi in the lead-up to the Fonterra release, where the world's biggest dairy exporter raised its forecast payout for the 2016 season to $4.60 per kilogram of milk solids from $3.85/kgMS.