FXstreet.com (Sydney) - The New Zealand dollar rose past 0.7300 on news Fonterra was increasing its payment to farmers by 20%.
As reported in the New Zealand Herald, the price of milk powder soared almost 88% as stocks are replenished. The Kiwi is known as a commodity currency and is well supported when the price of raw materials improve. Within 20 minutes following today's Fonterra's announcement, the Kiwi rose from 0.7245 to 0.7340.
In the US last week, unemployment rose 10.2% and investors looked for a safe-haven. This resulted in the USD and JPY strengthening though this did not last long.