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Kiwi Flys South!
By Mike Conlon | November 5, 2009
The New Zealand dollar, otherwise known as the Kiwi, is the biggest loser of the morning so far. Unemployment in New Zealand is at the highest its been since 2000, to 6.5%. Reserve bank governor Bollard said that the nation’s recovery would be at a slower pace than Australia’s.
The Kiwi, a flightless bird, is down .66% vs. JPY and .42% vs, USD. What’s important to note here is that a lot of times we just group some of these currencies together as the “risk trade” or as the “commodity currencies”. The reason I note this is because as of this writing, the Australian dollar or Aussie, is positive against most other currencies.
So even though the US stock market is up and the risk-taking trade appears to be in effect, it is important to remember the ffundamentals of individual currencies as well.
My guess is that sometime today, the Kiwi will trade back to fall in line with the overall risk trade. I’m going to look at some charts in a bit to see if there is anything to note.
So check back later!
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Tags: Aussie, Australia, bank, charts, commodity, course, currenc, currency, currency trading, dollar, dow, fundamental, fx, fxedu, jpy, Kiwi, lot, lower, market, Mike Conlon, new zealand, new zealand dollar, ssi, stock, time, trade, unemployment, USD
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