AUDNZD - Five Year Lows

[winner69]

Yep I agree JB & I think many have underestimated the hit to the NZ economy that is coming.
Still a little way off though I suspect.

I posted this link to this analysis a while ago. Counterintuitively falls in dairy prices don't appear to stuff the economy. But with x-rate its the traders who rule by creating as much as noise as possible.by reacting to any snippet of econ info.

http://www.sra.co.nz/pdf/DairyPricesAug14.pdf


A couple of extracts -


Since 1992 there have been seven significant falls in dairy product prices including the latest fall and in only one of these was there are recession and this was when the financial crisis struck in 2008/09 and had a major negative on a number of things.

And


Interestingly, between 1992 and 2007 the correlation between dairy product price inflation and annual GDP growth was -0.45 ........All of the five significant falls in dairy product prices prior to 2008 coincided with above average economic growth.