Currency Note Worldwide

Antipodean currencies reverse fortunes after poor start to week

By Smart Currency August 9th, 2013

Elsewhere, the Antipodean currencies have dominated headlines with both seeing marked volatility during the past week. Both currencies struggled on Monday, in particular the New Zealand dollar that reacted to a statement from the world’s-largest milk exporter, confessing that a recent batch of exports were infected with a deadly bacteria. This in turn lead to China and Russia imposing import halts on all dairy products coming out of New Zealand. The Australian dollar also fared poorly on the Monday, nearing three-year lows against the US dollar. However, the fortunes of the Australian dollar were reversed when we saw the Reserve Bank of Australia announce an interest rate cut to an all-time low of 2.50% on Tuesday morning. The Australian dollar had been sold off heavily in anticipation of the move and many predicted an even larger rate-cut of 0.5%; as a result, the Australian currency rebounded from 3-year lows and both currencies maintained their upward trajectories for the rest of the week. The Indian Rupee also experienced a particularly volatile week, weakening significantly towards the end of the week while the Japanese Yen continued to strengthen. Today, expect markets to move in response to the Reserve Bank of Australia Monetary Policy Statement, released in the early hours of this morning, and two sets of employment-related data coming from Canada in the early afternoon. After an eventful week, call your trader to keep pace with market movements.