Down Under Currencies Decline in FX Trading

November 18, 2008

Currency trading with the kiwi and the AussieIn currency trading, the kiwi and the Aussie are having trouble right now. The down under currencies are declining in FX trading as risk aversion remains, and as the global economy continues its descent into recession.

Both the kiwi and the Aussie are commodity currencies, and they rely on equities and raw materials prices to support them in forex trading. As the global recession slows demand and confidence, there is less demand for the products that help the down under currencies.

Interventions have not been helping the Aussie, and risk aversion means that the Japanese yen carry trade is unwinding to the benefit of the yen.