[Jason_Lim]

The NZD was the big mover overnight following stronger-than-expected current account numbers and an announcement by Fonterra, the world's largest dairy producer, that it was raising the payout to farmers due to a 12% increase in the milk price forecast. We should not get carried away, though: the improvement in the current account was partly due to a one-off tax payment, reflected weak imports to a greater extent than strong exports and remains very large. The NZD is not the favored commodity currency – the CAD seems most attractive to investors at present – but all the commodity currencies are likely to do well, as commodity prices are expected to start picking up once again.