Boa/ML:
- Says Australia’s focus on mineral exports puts it at much more risk of an investment slowdown in China
- Compared with New Zealand, its agricultural exports are more affected by trends in China’s consumption (overweighted towards Fonterra at present)
“China’s rebalancing away from investment towards consumption will be more positive for New Zealand than Australia”, and says the relative trend for New Zealand to have higher interest rates and commodity prices will therefore continue.
- They also point out the consumption and construction boom in NZ
- NZ will likley be the first of the G10 to hike rates
Obviously, the NZD hasn’t read the memo yet!
More at: China’s changes favour kiwi over Aussie (Financial Times, gated)
