NZD stuck to the bottom of the G10 pile on.....>

KIWI: NZD stuck to the bottom of the G10 pile on Thursday after the RBNZ pushed

out expectations for a rate hike. The move triggered NZD weakness across the

board, with NZD/USD printing multi-year lows of $0.6612. AUD/NZD spiked through

NZ$1.1100 to highs of NZ$1.1175.

- NZD/USD has continued to ease in early dealing, flirting with $0.6600 last. -

The moderation in the NZ manufacturing PMI generated more of a reaction than

usual in early dealing, likely owing to the RBNZ's lower growth

profile/highlighting the risks around growth. Elsewhere it is worth noting that

Fonterra "reduced last season's 2017/18 forecast Farmgate Milk Price to $6.70

(prev. $6.75). The prev. $0.25-30 guidance range has been held but it will be at

or slightly below this range & it is likely that the full year dividend will be

just the $0.10 already paid in April." There was no change to Fonterra's

forecast of the milk price for the current season of $7/kgMs. This comes after

Fonterra's stock was halted on Thursday. REINZ House price data will headline

the NZ docket next week, with Q2 PPI also due. Traders will look to the AUD/NZD

cross and NZ IR markets, as well as the broader USD themes for direction.