The New Zealand dollar gained today as milk prices jumped and risk appetite of Forex traders bolstered appeal of currencies tied to prices of commodities. That was the third consecutive session of gains of the currency against the Japanese yen.
According to the trade-weighted index on Fonterraâs website, August contract for delivery of milk powder gained 12.3 percent from the May 15 auction. That was the first gain since December 6. Joseph Capurso, a currency strategist at Commonwealth Bank of Australia, said that the result of sale was:
[…]very strong, so that suggested thereâs still demand for commodities. Thatâs quite a supportive influence on the kiwi.
Diary is one of the biggest export revenue earners for New Zealand. On top of that, today’s market sentiment was good, supporting demand for commodity currencies.
NZD/USD climbed from 0.7565 to 0.7646 and NZD/JPY edged up from 59.55 to 60.55 as of 11:27 GMT today.
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