The dollars of Australia and New Zealand were gaining in value on Wednesday as assets considered riskier came under increased demand, Bloomberg indicates.
Stronger business sentiment in New Zealand benefited the Kiwi against the Japanese yen as compared to late last year. The Aussie recovered from dips that closed the Tuesday trading session.
"The big risk facing the New Zealand and Australian economies, and hence the Australian and New Zealand dollars, is a sharp fall in commodity prices," currency strategist Mike Jones with Bank of New Zealand in Wellington told Bloomberg. "There's more attention than usual on European bond auctions, given debt jitters are starting to flare up again."
The New Zealand Institute of Economic Research released poll results indicating 13 percent of 797 companies surveyed in the nation said they anticipate an improving economy during the next six months, according to Bloomberg. The same poll during the fourth quarter of last year determined zero percent gave that answer.
But analysts and investors continue to be apprehensive about the slowing pace of development and growth in China, according to The Australian. So too is concern deepening for the lingering sovereign debt crisis and the damages it causes.
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