Why should I be knowledgeable about the Australian and New Zealand economies?
Australia and New Zealand are developed economies. These countries have steady GDP growth and strong trade relations with other countries. Analysis of the indicators of these countries is identical to the fundamental analysis of other economies. You must pay close attention to the unemployment rate, key rate, production activity index, and GDP growth rate.
What do the Australian and New Zealand economies depend on?
About 30% of New Zealand's exports are milk and dairy products. Therefore, milk prices in global markets will directly affect the situation with the NZD. Global Dairy Trade publishes a milk and dairy price index twice a month on Tuesdays.
Growth in this index has a positive impact on New Zealand’s currency. If the index declines (dairy prices are falling), this is a negative factor for the NZD.
Australia's economy depends on mineral fuels (oil, coal, fuel oil), which make up more than 30% of exports. Therefore, rising fuel prices will positively affect the country's exports and the AUD.