The existing troubles in the Chinese stock market and the entire Chinese economy are aggravating the risks for the national economy of New Zealand. The Board of Directors of Fronterra, New Zealand’s biggest exporter, are concerned about the fact that the company is losing its share in the biggest outlet.
According to the company’s CEO, Fronterra may well fail to attract as much of the the investment capital as the company expected. In particular, he says that Fronterra is planning to double its market cap from 5 to 10 billion dollars in a matter of 5 years. Now this ambitious plan is in jeopardy. The CEO has to admit that under such circumstances, including the negative tendencies seen in China, its biggest outlet, the ambitious goals seems unreal. It should be noted that Fronterra’s dairy products exported worldwide account for some 25% of New Zealand’s GDP.
FOREX
Masterforex-V academy reports that the New Zealand Dollar has been going down against its American counterpart within the scope of a mid-term downtrend. More specifically, NZDUSD is going down within the cope of wave A/B of level Daily.
A break above the top of the descending MF sloping channel and MF pivot 0.6791 will indicated the end of the bearish move. Alternatively, on breaking below the 0.6497 low, the currency pair is likely to see and test further lows - 0.6488, 0.6391/85, 0.6316/13.
