NZD: Fonterra cuts forecast milk payout

Fonterra, the big NZ dairy company, has cut it’s forecast to NZ$5.30/kg from NZ$6.00/kg. This had been widely expected by the market.

NZD/USD had taken out the important .8100 support level prior to the announcement and fell another 30 pips to .8040 before stabilising.

  • NZD/USD technical support should be very firm around .7935 if it does break below the psychologically important .8000;
  • AUD/NZD should now consolidate in a 1.0920/1.1020 range.

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