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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 firmed last week, up ~2% through the week dealing in a 2 cent range. The table below presents levels of correlations between NZD and key macro drivers (note the yield differential reflects swap rates).
- There was no standout macro driver in a volatile week of trading as the fallout from the collapse of SVB and concerns over regional US and European banks escalated.
- Widening rate differentials did help lift the NZD however the observed correlations were not strong. The kiwi looked through weakness in global equities and rising VIX.
- Over the longer time frame 2 year rate differentials, agriculture and milk futures are showing the strongest correlation to the NZD, however there is no standout macro driver.
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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