• Macro players still very long of NZD but short-term market has been getting short after RBNZ and up-coming risk events;
  • Interbank market reported some very solid bids yesterday at .8525 and more are expected .8500/15;
  • There are some tight trailing stops mentioned above .8570 but sources with one of the big prime brokers expect offers to be very heavy on any rally towards .8600;
  • Macro longs are unlikely to panic but a break below the 200-dma at .8450 could change that;
  • Much of course will depend on the Fonterra announcement and we will probably see positional adjustment ahead of that.