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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 global equities, milk futures and 2 year yield differential have strengthened over the past week, standing out as a key macro driver in recent dealing. The table below presents levels of correlations between NZD and key macro drivers (note the yield differential reflects swap rates).
- In a volatile week of trading the NZD/USD fell ~3% after printing its highest level since February. The main drivers in the NZD last week were Global Commodities, 2 Year Rate Differentials and Agriculture.
- Over the longer time frame 2 and 5 year rate differentials as well as milk futures have emerged as the main macro drivers.
- The correlation with agriculture and global commodities weakens over the longer frame as does the correlation with global equities.
Fig 1: NZD/USD Correlation with Global Macro Drivers:
Source: 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.
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