NZ: Euro sunshine for the economy - ANZ

Recent currency movements seem to be providing some positive support for commodity prices and while the focus is usually on the USD (and its recent weakness is no doubt helping global commodity prices) the Euro also appears to be supporting New Zealand’s largest goods export – namely dairy, explains the analysis team at ANZ.

Key Quotes

“US milk supply continues to grow steadily (1.5-2%) and the lower USD is making exporting more attractive, Europe remains New Zealand’s largest direct competitor. With milk production struggling due to weather challenges and the 10% appreciation in the EUR/USD since the start of the year, both appear to be weighing on their export volumes. This dynamic looks to be providing some support to global dairy prices at present.”