Commodity backed currencies suffer as speculation surrounding the US possible tapering procedure mounts

Elsewhere, the commodity backed currencies continue to suffer as the markets digest the news of the US possible tapering procedure. The Australian dollar, New Zealand dollar, Canadian dollar and South African rand all suffered yesterday as did the stock markets and commodities like Crude oil, Canada’s largest exported commodity, due to the risk averse nature of the markets from the fear that the US will be winding down its cash printing machine that is its quantitative easing program. The New Zealand dollar was hit particularly hard following comments from the Reserve Bank of New Zealand who suggested that the currency was “over-valued”. There is little data of note released through the course of today, but tonight we will see manufacturing PMI data released out of China which may well cause a reaction in the markets. Get in touch for a live rate.