Forex Flash: Commodity-based face slippery slope – UBS

In light of the recent focus on commodities and price actions, it’s worth noting that New Zealand's main export is dairy. A case can be made that the recent surge in prices is temporary – after all local drought conditions are now finally subsiding. However, “even if milk prices decline from here, there appears to be worse in store for Australia given its dependence on 'hard' commodity exports – the prices of which have been falling for several weeks.” warns Research Analyst Gareth Berry at UBS.