Equity markets sustained their global growth and continued to increase the attractiveness of the risky currencies. The New Zealand dollar gained for the second consecutive day and rose against the US dollar today. Meanwhile, the Australian dollar also advanced versus the major currencies but less extreme than the New Zealand dollar. These movements provided Forex investors with nice opportunities.

Competitiveness regional export economies improved – Rate cut to 3%
The competitiveness of the regional export economies improved as a result of the significant rise of the commodity price yesterday. The Reserve Bank of New Zealand said that the interest cute tempo will decelerate after the official cash interest reduction from 3.5 percent to 3 percent; a record low.

Australian and New Zealand dollars gain
Risk-aversion decreased considerably due to yesterday’s global economic brightness as the New Zealand dollar gained for the second consecutive day versus the Japanese yen; the second month highest level against the Japanese yen. The New Zealand counterpart of the AUD rose for the fourth successive day versus the AUD.

Recovery maybe temporary – Short-term outlook NZD and AUD bullish
Pessimism dominated the markets the last few months and some analysts believe it will not be a sustainable correction. Investors tend to leave the less promising dollar and yen for the high-yielding currencies, while banks’ stocks and other shares are increasing. The kiwi (as the NZD is sometimes called) and the Australian dollar are facing a bullish short-term future.