Quote Originally Posted by lemonski View Post
Probably a dumb question, but why does the market seem to be ignoring all the poor results coming out of the GlobalDairyTrade auctions? Overnight there was a 10.8 drop in global dairy prices, yet the NZD hasn't moved. Reading about the NZD and AUD reaching parity, one of the factors mentioned in the performance of the AU economy was the bottom had dropped out of iron ore prices. Yet NZ's "iron ore" doing poorly doesn't seem to have any effect.
It all depends what sort of mood traders are in mate and what story they want to get excited about this minute.

Over time as pointed out earlier on this thread there is little (even slightly negative) correlation between global dairy prices and the NZD/AUD

The driver of the cross rate over time is the relative economic performance between the countries (and interest rate differentials)