The NZD was the worst performing major currency, falling0.6% against the USD on the back of a lower milk payoutforecast and stronger US data. NZD/USD hovers just belowthe 0.8500 mark this morning.Fonterra revised is 2014/15 milk price forecast down to$6.00 per kg of milk solids, from the initial $7.00 forecastmade in May. That compares to the previous season’s milkprice of $8.40, and was at the lower end of what the markethad been expecting (probably in the region of $6.30-$6.50).Of course, a downgrade was widely anticipated, given thenegative combination of tumbling auction prices and a stillelevatedNZD.
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