Signs of slowing economies in both Australia and New Zealand could lead to a further devaluation of each country’s currency. The Australian dollar appears to be set to record its fourth consecutive monthly loss against the yen while losing 3.5 percent against the U.S. dollar during August alone. New Zealand’s dollar has suffered five straight months of losses against the U.S. dollar.
Both countries derive much of their economic growth from the export of commodities but with global demand waning, so too are export sales. Should this trend continue as many expect, it is likely both currencies will continue to weaken in the coming months.
Source: Bloomberg
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by Scott Boyd (see all)
- Japan’s Demographic Trap - 25 June 2012
- Officials Talk Openly of Greek Euro Exit - 16 May 2012
- Greek Voters Prepare to Roll the Dice - 15 May 2012