Where To Find The Global Dairy Trade Index Info
The GDT Price Index used to be a big deal for the NZD, and even though the correlation isn't what it once was, it's still a useful gauge to use.
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Just a quick question here from Lawrence. Lawrence wants to know where he can find a chart for the global dairy trade index. And obviously the reason why he wants to look at that is for the correlation to the kiwi dollar.
Now, for those of you that don't know, I just open up the OEC world website that shows you that the vast majority or biggest export for the New Zealand economy is of course dairy products. So there's reason to expect correlation between the kiwi dollar and something like the GDT.
Now it is important to note that the correlation was much stronger couple of years ago. Normally when you saw just small fluctuations in the price index, the global daily trade price index, that normally saw subsequent moves up or down in the kiwi dollar as well, but it is important to know that that correlation has somewhat diminished and broken down.
So even though we might get big moves in the global dairy trade index, it doesn't necessarily cause big fluctuations in the kiwi dollar as it used to a couple of years ago, but it is still a valuable correlation to have in mind.
The easiest way to look at this, Lawrence, is to go to the globaldairytrade.info website itself. It has a little chart there. It'll give you the price change as well, as well as the actual price, a percentage change as well as the price, and also break it down into the various sub components as well. And you can see the little chart.
I did find one on Quandl, which would have been great because that can be used on trading view, but unfortunately for some reason it looks like this specific series has been discontinued for Quandl. You can see the loss value dates back to 2017.
So unfortunately we won't be able to use that one in trading. It would have been great, but as an alternative, you can just use the global dairy trade one. As I said, the correlation isn't as strong as it used to be. So do take that one with a pinch of salt.
But if any of our subscribers know how to get this type of info in something like trading view, it'll be great if you guys can share that info, but for now that's the only one that I can help you with. Unfortunately, they won't.
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