NZD: Significant risk event on Tuesday afternoon

All NZD traders should take note of the Fonterra board meeting tomorrow afternoon NZ time.

The following is an excerpt from a WestPac report which is available in the FXWW chat-room on Reuters Messenger.

WP.. Nzd – No dairy auction this week but note on Tuesday there is the Fonterra board meeting. Expect a revision to the payout from a current Nzd$7.00 to the low 6.00’s – our own revised forecast is currently at 6.00. Announcement seen as bearish and likely to push nzd towards our 1 week target of 0.8400. Currently Nzd testing support off Feb lows 0.8540 with bids seen 0.8520-00 giving way to further stops below 0.8500 for a test of 200dma at 0.8450.   Nzd – The effect of lowering the dairy payout from NZ$ 7.00 to NZ$ 6.20 would take 4 billion NZ out of the dairy sector.