Is NZD going down the AUD route already with its China exposure?
Much has been made of the RBA’s China focus over the last few years. Nearly every policy decision statement issued would likely include a quick China assessment, and the RBA itself has a full-time presence Beijing, alongside its London and New York offices. The RBNZ should probably take note for New Zealand’s exposure is in a similar league: in 2009 exports to Australia – traditionally the country’s biggest trading partner – were 2.5 times that of exports to China; as of February, New Zealand’s sales of dairy and meat alone have surpassed all merchandise exports to Australia.
Read the full report: UBS