28 Jul 2014
Lower milk price to highlight ‘unjustified’ NZD - BNZ
FXStreet (Guatemala) - Stephen Toplis, Head of Research at BNZ explained that Fonterra is expected to announce its dividend intentions by Thursday.
Key Quotes:
“This is a grand opportunity for the dairy giant to also revise its milk price forecast for the 2014/15 season. Any milk price change will receive attention, especially with very little else on the local calendar”.
“While both the dividend and milk price forecast are of interest, it is the latter that carries more macroeconomic importance”.
“Indeed, it is the NZD’s resilience to the likes of the dairy (and log) price declines that was very much likely part of the reason why the RBNZ labelled the level of the NZD ‘unjustified’ at last week’s OCR announcement”.
“With words like that it has got the market abuzz with intervention chatter”.
“It will certainly put more attention on Wednesday’s Reserve Bank figures that will show how many NZ dollars the bank bought or sold, on net, even if the data are a bit dated being for the month of June”.
Key Quotes:
“This is a grand opportunity for the dairy giant to also revise its milk price forecast for the 2014/15 season. Any milk price change will receive attention, especially with very little else on the local calendar”.
“While both the dividend and milk price forecast are of interest, it is the latter that carries more macroeconomic importance”.
“Indeed, it is the NZD’s resilience to the likes of the dairy (and log) price declines that was very much likely part of the reason why the RBNZ labelled the level of the NZD ‘unjustified’ at last week’s OCR announcement”.
“With words like that it has got the market abuzz with intervention chatter”.
“It will certainly put more attention on Wednesday’s Reserve Bank figures that will show how many NZ dollars the bank bought or sold, on net, even if the data are a bit dated being for the month of June”.