The New Zealand dollar gained on expectations prices will rise in tonight's GlobalDairyTrade auction, adding to the positive story of the domestic economy.
The kiwi dollar rose to 71.33 US cents as at 5pm in Wellington from 70.98 cents late yesterday. The trade-weighted index edged up to 78.20 from 78.10.
Whole milk powder may rise 3.4 percent, the fourth straight gain for New Zealand's key commodity export at tonight's dairy auction, based on pricing of NZX dairy futures. The Reserve Bank has forecast the domestic economy picked up pace this quarter and New Zealand interest rates are still at a premium to US rates. However, traders say there's still a risk that the Reserve Bank could cut the official cash rate again while the Federal Reserve could hike rates again after the increase widely expected from this month's meeting.
See live rates for the NZ-US $ below. Click for more information: