Technical information and review of the form of both the NZD and the AUD are building concerns that their respective values could fall in the coming weeks. The data suggests that we could see a reverse in this year’s advances for both the NZD and AUD, all linked to the interest rate advantage. They have both been in the top three performers against the USD this year and over the last 30 days. The theory behind it is that the US economic data so far this year has been hampered by the poor weather at the beginning of the year. As this poor form recently comes to an end and the data starts to show the signs of a recovery in the US it should continue to build the expectation of an interest rate hike early next year. This will make the AUD and NZD less in demand and push its value down making them less expensive to buy – or at least that is the theory which has been suggested by some of the largest FX speculators over the last 12 hours.
In the near future watch out for the UK Interest rate decision later today which could make the value of the Pound climb along with with US Non-Farm Payment figures tomorrow. This is the largest economic report for the month and has an impact on the GBPAUD pairing due to the impact from the release on the risk appetite of traders and their willingness to have more or less exposure to the AUD.
For a more details explanation or information on the medium term forecast make sure to keep visiting or us. Alternatively please feel free to get in contact for a personal conversation with your situation in mind which should help you make a far more educated decision on the transfer you are planning to make.
Contact the Author – Steve Eakins – via email at email@example.com or 0044 (0)1494 787 478