Lower commodity prices to weigh negatively on AUD, NZD

Commodity prices are extremely low relative to a few years ago and this will continue to weigh negatively on the AUD and NZD in the months to come. The chart shows the commodity indices of both the RBA and ANZ, indexed to January 2006.
 
The New Zealand index has fallen 18% since the start of 2014 whilst the Australia index has fallen over 23%, but this started declining from the middle of 2011. In New Zealand, dairy, which is by far the largest export, has been the main contributor. Prices have  fallen over 35% since the start of 2014. 

For Australia it is a similar picture, with iron ore its main export and the metal ore mining industry accounting for nearly 25% of total exports. The 50% fall in iron ore price since the start of 2014 has weighed both on the economy and the currency, and will continue to do so.