The NZD has recouped nearly all of its Monday morning losses over the past 24 hours. The NZD/USD and NZD/ AUD are currently trading at 0.7810 and 0.8760, respectively – pretty close to where they were prior to the weekend’s “dirty pipe” news.
Confirmation from Fonterra that China has not imposed a blanket ban on NZ dairy products has been behind the NZD’s bounce. Indeed, it seems China has banned only a few NZ export products – whey powder and dairy base powder. Skim and wholemilk powder, which make up the vast majority of NZ dairy exports to China, are not subject to the ban.
Read the full report: FX Strategy
BNZ