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Global Commodity and Agriculture Dominant Macro Drivers Last Week


NZD/USD finished last week's trade ~1% firmer over the week, dealing in a ~2% range. The table below presents levels of correlations between NZD and key macro drivers (note the yield differential reflects swap rates).

  • Global Commodity and Agriculture prices were the dominant macro drivers in the NZD last week. Higher Global Equity prices also aided the rise in the NZD.
  • The NZD looked through weakness in Milk futures through the week and over the longer time frame.
  • Over the longer time frame there is no standout macro driver, the 2-Year Yield Differential does show the strongest correlation to the NZD.

Fig 1: NZD/USD Correlation with Global Macro Drivers:

Source: MNI/Bloomberg

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