FXStreet (Delhi) – Research Team at ANZ, expect that the current severe El Nino weather event, which on current trends will soon be the strongest such event in a number of years has already seen a 15% reduction in Australian wheat yields. Key Quotes “But Australia may escape the worst of it. The worst of the dryness to date has been in Victoria, which is a much smaller grain producer than New South Wales, Western Australia and South Australia.” “We’ve also had above-average rainfall in August which has helped sustain subsoil moisture, and slightly below average temperatures compared with other drought years.” “As a result, we believe the impact on Australia’s GDP growth will be much less than what we experienced as a result of the 2002 and 2006 droughts. In each of these cases, farm output subtracted around 0.5ppts from GDP growth over a two year period. We’re not expecting that this time around.” For more information, read our latest forex news.