The New Zealand dollar was down against the greenback after a reduced final payout from dairy giant Fonterra, with weaker than expected growth in Asia taking its toll on the kiwi.
The kiwi recently traded at US81.95c, down from US82.24c in the morning. It fell to 72.90 on the Trade Weighted Index against major trading partners' currencies, from 73.08 in the morning.
Direct FX currency adviser Sam Coxhead said the market had already priced in Fonterra's reduced final payout of $6.40 a share to farmers, down 19 per cent from last year. At the farm gate, milk solids were fetching $6.08 a kilo, down from $7.60 last year.
"It was very much not surprising," Coxhead said, adding that otherwise the day was uneventful for the kiwi.
"The slowing Asian growth profile is having a bit of a drag on both kiwi and aussie in the short to medium term.
"There is not a lot of data coming up overnight except a few debt auctions in Europe and some further housing numbers in the US ahead of the National Bank's local business confidence survey due out tomorrow."
The kiwi recently traded at 79.15 Australian cents, up marginally from A79.11c in the morning. It was at 63.65 euro cents, down from 63.72 euro cents in the morning. It slipped to 50.68 pence from 50.77 pence in the morning. It was at 63.72 Japanese yen, down from 63 yen in the morning.
Coxhead expected the kiwi to trade between US81.50c and US82.20c overnight with a slight bias towards the downside.
- © Fairfax NZ News