The kiwi traded at 71.57 US cents as at 8am in Wellington. Photo / 123RF
The New Zealand dollar fell, trading near a month-low, as an unexpected drop in dairy prices and further evidence of a cooling property market weighed on sentiment.
The kiwi traded at 71.57 US cents as at 8am in Wellington, and earlier touched 71.46 cents, from 71.62 cents late yesterday. The
trade-weighted index fell to 75.60 from 75.82.
Dairy product prices fell in the GlobalDairyTrade auction overnight, with the GDT price index down 2.4 per cent and whole milk powder falling 2.7 per cent to US$3,037 a tonne. NZX-traded dairy futures had been pointing to stronger prices for New Zealand's biggest export commodity. Some 37,990 tonnes of product was sold, up from 34,117 tonnes at the previous auction.
Meanwhile, Quotable Value figures showed annual growth in New Zealand property values continued to slow in September, with the QV house price index up 4.3 per cent in the year, the slowest annual rate since mid-2012.
"The shine is dulling slightly on NZ's economic story, as others improve, and NZD/USD is sitting right on technical support levels right here," said Con Williams, rural economist at ANZ Bank New Zealand, in a note.
