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3 Apr 2014
Commodities a leading indicator for NZD - BNZ
FXStreet (Guatemala) - BNZ Research team explained one dynamic that has become increasingly apparent in respect of the NZD.
Key Quotes:
“Commodity prices are now the leading indicator of NZD strength, outstripping traditional drivers such as interest rate differentials and risk appetite”.
“As a result, it is important to note that milk prices saw their third consecutive fall at Fonterra’s
Global Dairy Trade auction in mid-March, taking them out of a tight range that has held since mid-2013”.
“We watch this space with interest, as declining commodity prices (from record highs) are a key component of our view for a lower NZD over this year (and the next)”.
Key Quotes:
“Commodity prices are now the leading indicator of NZD strength, outstripping traditional drivers such as interest rate differentials and risk appetite”.
“As a result, it is important to note that milk prices saw their third consecutive fall at Fonterra’s
Global Dairy Trade auction in mid-March, taking them out of a tight range that has held since mid-2013”.
“We watch this space with interest, as declining commodity prices (from record highs) are a key component of our view for a lower NZD over this year (and the next)”.