The Australian and New Zealand dollars both showed a second day of decline today on the Forex market as the stocks, commodities and the confidence in the fast recovery from the recession fell world-wide.
Both currencies have been showing a nice daily rally against the U.S. dollar and the Japanese yen until they began to go down yesterday, almost paring the gains of the previews 3-5 days. The carry trade wave, which started in the last decade of December didnt live for too long and the risk-averting mood now dominates over the Forex market again.
The fundamentals from the Australia are continuing to come out worse than the traders expect — the housing and the employment markets are still highly depressed. Commodities are the large part of the Australian exports and they arent very popular these days with the price on many types are already at the levels of 2004/2005.
AUD/USD fell from 0.7132 to 0.6998 as of 8:16 GMT today. AUD/JPY declined from 65.98 to 64.23. NZD/USD went down from 0.5914 to 0.5862, while NZD/JPY slid from 54.70 to 53.77 today.
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