The dollars of Australia and New Zealand are likely to drop in value against the world's reserve currency as the year proceeds as the U.S. economy continues its recovery, according to Bloomberg.
Thus far this year, both South Pacific currencies are among the top performers against the U.S. dollar and are likely to be influenced by the U.S. Labor Department's jobs report, which is scheduled for release on Friday.
"Given what we're seeing from trending, buying the dip is clearly the strategy that needs to be employed," chief market strategist Chris Weston with IG Ltd in Melbourne told the news source on Thursday. "If we get a really good nonfarm payrolls this Friday, that could be the start of something more significant for the dollar, but you've got to be selective in which currency you want to be long the dollar against."
The Kiwi and the Aussie have respectively climbed about 4.3 percent and roughly 3.5 percent against the dollar.
Governor Glenn Stevens with the Reserve Bank of Australia is slated to speak on Thursday, according to The Sydney Morning Herald. That likely will impact the monetary units' performance on Thursday.
Risk Disclosure
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
© 2021 StoneX Group Inc. All Rights Reserved
