90 at 9: Fonterra auction surprise; NZ$ jumps over 67 USc; Westpac follows BNZ on fees

Bernard Hickey details the key news overnight in 90 seconds at 9am in association with ASB, including news that the wholemilk powder price in Fonterra's auction this morning was up a surprise 26% to US$2,301 a tonne. This boosted the currency by half a cent to a fresh 10 month high over 67.2 US cents, wiping out some of the benefits.

This is good news for the NZ economy and may mean Fonterra will be able to keep its NZ$4.55/kg payout. It happened despite Fonterra introducing Australian milk powder to the auction.

Meanwhile, Westpac has followed BNZ in cutting its dishonour fees on overdrawn accounts. Many will drop from NZ$25 to NZ$9 The move will cost Westpac NZ$50 million, twice what it cost BNZ. Will ASB and ANZ and National follow suit?

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