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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 Milk Futures, Agriculture and Global Equities 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).
- NZD/USD fell ~0.3% yesterday in a volatile week of trading observing a $0.5770/5870 range for the most part. The Kiwi's main drivers look to be associated with Milk Futures, Global Equities and Agriculture.
- The pair looked through a rise in Global Commodity Prices last week and also in the longer time frame.
- Over the longer time frame Global Equities and 2-Year Yield Differentials continue to be the dominant macro drivers in the pair.
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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