There is no rest for the kiwi dollar since it was hit by the RBNZ. This time, the fresh fall comes from the price of milk – a major export for the New Zealand economy.
NZD/USD dropped another leg lower and is approaching support at the round number of 0.85.
Fonterra, New Zealand’s milk company, cut its 2015 milk payut forecast by 14% to $6 NZD per kilogram. The previous forecast was $7. The blame comes from a global decline in prices, falling demand in emerging markets and a build up of inventory in China.
While the move was widely expected, the impact on the kiwi was clear. It fell from the battle line of 0.8550 to 0.8510 and it seems that it still hasn’t found the bottom.
Initial support awaits at the round number of 0.85. The next lines are 0.8435 and 0.84. Resistance is at 0.86. For more, see the NZDUSD forecast.
