NZD Bullish: BNZ raised 2020/21 milk price forecasts matching Fonterra’s NZ dollar 6.8 level

Recent milk price forecasts from the Bank of New Zealand (BNZ) flashes positive signals for the New Zealand dollar (NZD). The kiwi bank revised up its 2020/21 prediction from NZD 6.5 per kilogram (KG) to 6.8 recently.

Earlier, the global leader in the dairy industry, Fonterra also increased their expectations for milk prices while marking the NZD 6.8 level for the said period.

It’s worth mentioning that as per the latest fortnightly data from the Global Dairy Trade, the prices of the Whole Milk Powder (WMP) also grew 0.3%.

Market implications

NZD/USD pierces 0.6600, up 0.42% intraday, by press time of early Wednesday. New Zealand’s economy depends majorly on the dairy industry and hence any positive news for the same can help the NZD bulls. Also adding to the pair’s upside momentum could be the recently increased odds of the US coronavirus (COVID-19) stimulus.

Read: NZD/USD Price Analysis: Defensive Bears moving to breakeven