2014.11.0403:56:35UTC+00New Zealand dollar plummets as RBA tones down rhetoric

The New Zealand dollar dropped against the Australian dollar as the Reserve Bank of Australia toned down its rhetoric in describing its currency as too high, and before the Fonterra Cooperative Group dairy auction.

The kiwi tumbled to 88.70 Australian cents at 5:00 p.m. in Wellington from yesterday’s 88.92 Australian cents. It also fell to 61.82 euro cents from 62.17 euro cents, and went down to 48.41 British pence from 48.59 British pence. But the currency climbed to ¥87.94 from ¥87.48.

"They're still talking about the Aussie currency as still too high, and was very similar to what the RBNZ said, in that their respective commodity prices have fallen," said Michael Johnston, Senior Trader at HiFX.

Commodity prices declined in October for an eighth month, based on the ANZ commodity price index. Meanwhile, traders will be awaiting the dairy auction on Fonterra's GlobalDairyTrade platform.