Futures Market News
South Pacific currencies see some optimism
May 24, 2012 12:32 PM
After weeks of steady declines, some investors are choosing to reinvest in the dollars of Australia and New Zealand, according to Bloomberg.
The South Pacific currencies have been hurt primarily by the strong risk-off atmosphere created by the ongoing debt crisis in Europe, particularly as concerns mount that Greece might be forced to leave the euro zone.
But some investors think that this downward trend was carried too far.
"The markets have been excessively pessimistic," Kengo Suzuki, a foreign-exchange strategist at Mizuho Securities Co., told Bloomberg. "We’re seeing some buying back in the aussie and kiwi because they’ve been falling too rapidly."
Despite a slightly disappointing report about New Zealand's budget surplus, news from China suggests the country - a major trade partner of both South Pacific countries - could soon implement new economy-spurring policies.
Around 10:46 a.m. Thursday, the aussie and the kiwi rose 0.38 percent and 0.53 percent against the U.S. dollar, respectively.
The day before, Bloomberg reports that both currencies hit their lowest points against the dollar in six months on the back of concerns about Europe.
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