The NZDUSD knee jerked lower on the back of....>

KIWI: The NZDUSD knee jerked lower on the back of the RBNZ bulletin, which noted

that "with the OCR at 1.75%, the Bank has significant further room to ease

monetary policy in a conventional way." The cross quickly recovered as traders

noted the opening line of the verse which stated that "currently, monetary

policy settings are stimulatory in New Zealand, and the Bank is not projecting a

significant decrease in the OCR." The bank also stressed that "conventional

monetary policy remains effective in influencing inflation and activity."

- Elsewhere Fonterra have announced an opening 2018/19 season milk price

forecast of $7.00/KgMs, as well as upgrading their forecast for the 2017/18

season from $6.55 to $6.75, although higher commodity prices have weighed on the

forecast dividend range which now stands at 15-20 cents per share (prev. 25-30

cents).

- NZDUSD last trades unchanged at 0.6935. Initial resistance comes in the form

of the 21-DMA (0.6974), while support lies at 0.6918.