Dairy and the kiwi: does it still matter?
Dairy was once the kiwi's defining export story, with auction results moving NZD. The relationship has faded as services and rates took over.
Kiwis traders:
- whether you still follow dairy auctions
- what replaced dairy in your NZD framework
- how the RBNZ's path dominates now
Background: commodity currencies.
Background: Commodity currencies explained: the Australian, New Zealand and Canadian dollars and the Norwegian krone
Why the currencies of big commodity exporters move with iron ore, dairy and oil prices, what each country actually exports, and when the link weakens.
What are commodity currencies?
Currencies of countries where commodity exports are a large share of trade, such as the Australian dollar (iron ore), the New Zealand dollar (dairy), the Canadian dollar (oil) and the Norwegian krone (oil and gas).
Why does the Australian dollar follow China?
Iron ore is Australia's largest export and much of it is sold to China, so Chinese demand and data affect Australia's export income and its currency.
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