The price of dairy in global auctions has risen more than 25 percent after bottoming in late 2015. The rise has been relatively steeper this year. But since the rise, the price has dropped more than 17 percent in New Zealand dollar terms. 

Could this be a major influencing factor, when the Reserve Bank of New Zeland (RBNZ) meets next week? However, it is far from clear whether an action of just 25 basis points cut would be sufficient to weaken the kiwi or not and that is definitely would be a key factor in the decision. 

Chart courtesy: Sharon Zöllner, Senior Economist, ANZ Research