ASB's latest commodity report (focuses on NZ commodity exports)

It remarks on the NZD:

  • Commodity prices in NZD terms are nearing record highs
  • The relatively low NZD explains a large chunk of the high Index level in NZD terms
  • The NZD is low compared to commodity prices:

The reasons for divergence include (though are not limited to)

  • relatively low NZ benchmark interest rates
  • global geo-political events such as US-North Korea tensions

(I'd add the NZ election to those ASB highlight)

Further from ASB on the kiwi dollar:

  • Over the remainder of 2017 and early 2018 ... All else being equal and the fact that the NZD is relatively low to begin with, we anticipate that this may lead to some upwards pressure on the NZD over the period.