The New Zealand dollar is heading to the lowest rate in eight weeks against the yen and losing against the greenback, as global risk aversion is damping demand for the kiwi’s high-yield profile.
The New Zealand dollar started another week with a negative performance as pessimism is still spreading in equities markets locally and world wide, damping demand for the kiwi, which often experiences falls as risk aversion grows among traders. A report in New Zealand added for the pessimism towards the kiwi, as farmers confidence fell for the third time since November, since dairy prices are constantly slumping in the country, slashing profits in the agriculture sector. The Australian dollar followed its regional counterpart and also declined substantially, being the worst performer against the greenback, on speculations that U.S. corporate profits will fall, adding to the growing attractiveness of safer positions with the U.S. dollar and the yen.
The economic situation in New Zealand, as in its neighbor Australia does not offer attractiveness enough for traders to purchase kiwi priced assets, as risk aversion is driving them away to other overseas options. Even if the economic contraction in the region is far less considerable as it is in other continents, the volatility of the New Zealand dollar is being an option for traders to profit, currently selling it to purchase yen priced assets.
NZD/JPY declined to 57.43 as of 11:51 GMT from an opening price of 57.98. NZD/USD followed, from 0.6277 to 0.6222.
If you want to comment on the New Zealand dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
The New Zealand dollar started another week with a negative performance as pessimism is still spreading in equities markets locally and world wide, damping demand for the kiwi, which often experiences falls as risk aversion grows among traders. A report in New Zealand added for the pessimism towards the kiwi, as farmers confidence fell for the third time since November, since dairy prices are constantly slumping in the country, slashing profits in the agriculture sector. The Australian dollar followed its regional counterpart and also declined substantially, being the worst performer against the greenback, on speculations that U.S. corporate profits will fall, adding to the growing attractiveness of safer positions with the U.S. dollar and the yen.
The economic situation in New Zealand, as in its neighbor Australia does not offer attractiveness enough for traders to purchase kiwi priced assets, as risk aversion is driving them away to other overseas options. Even if the economic contraction in the region is far less considerable as it is in other continents, the volatility of the New Zealand dollar is being an option for traders to profit, currently selling it to purchase yen priced assets.
NZD/JPY declined to 57.43 as of 11:51 GMT from an opening price of 57.98. NZD/USD followed, from 0.6277 to 0.6222.
If you want to comment on the New Zealand dollar’s recent action or have any questions regarding this currency, please, feel free to reply below.
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