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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 dipped as far as 0.6125 post the Asia close, a fresh 2yr low, before a US equity rebound dragged the pair back to around 0.6170, which is where currently track.
- Against the rest of the G10 FX complex NZD has outperformed over the past 24 hours, with only JPY falling less against the USD over this period. The cross AUD/NZD fell back 1.1015/20 versus yesterday's high of close to 1.1080.
- Still, the path of least resistance for NZD/USD looks to the downside, as global recession fears continue rise. The late May 2020 low of just under 0.6100 is the next potential downside target.
- NZD is likely to remain dominated by offshore drivers in the near term, at least until next week's RBNZ meeting.
- The latest GDT whole milk powder auction price fell to $3961/tonne, from $4125 previously. This is a 4% fall, and we are now close to 17% off earlier 2022 highs. We are still elevated from an historical standpoint, see the chart below.
- Late yesterday, core logic house price data for NZ also printed. Prices fell by 2.3% in Q2, the largest drop in 13 years. We are 12.4% above levels from a year ago though. Housing affordability and higher rates are keeping a lid on housing demand.
Fig 1: NZ Whole milk Powder Average Auction Price
Source: MNI - Market News/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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