Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NZD
NZD/USD correlations with 2 year yield differentials and commodity prices have strengthened over the past week, standing out as a key macro driver in recent dealings. The table below presents levels of correlations between NZD and key macro drivers (note the yield differential reflects swap rates).
- The pair has been mostly range bound the last week, although dips are being supported. The continued recovery in commodity prices last week has helped on this front, while yield differentials are up off recent lows. The 2yr swap last around +56bps, we were at +50bps on Thursday last week.
- Through January the NZD/USD rose ~4% with strength in global equities and commodity prices, as well as an easing in the VIX all supporting the rally.
- Conversely, the recent weakness in Milk Futures hasn't weighed on the Kiwi, although the monthly correlation does remain relatively strong.
Fig 1: NZD/USD correlation with Global Macro Drivers
Source: Market News International (MNI)/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok