The dairy industry is very important to New Zealand and therefore the NZD is very sensitive to forecasts from Fonterra, the world’s largest exporter of dairy products. The NZD/USD surged this morning on the latest forecasts, jumping 1 cent from .7250 to .7350 against a struggling USD but also rallying against its main trading partner, the AUD.
The AUD/USD has also been helped by CBA’s latest earnings but AUD/NZD selling is tempering gains.