Excerpt from: GFT Analysts in the News
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| October 27, 2008 | | Down under currencies in FX trading | The Australian dollar, along with the New Zealand dollar, is sliding in currency trading on the FX market today. Right now, down under currencies are suffering in FX trading.
As the carry trade unwinds, Aussie and kiwi assets are being sold and the Japanese yen is gaining. Additionally, a global recession means that demand for the commodities that keep down under currencies supported in FX trading is waning.
Bloomberg reports on the situation for the Australian dollar in currency trading:
``Investor confidence is shot to ribbons and it's the carry
trades that are copping it fair and square in the face,'' said
Paul Milton, chief foreign-exchange dealer at Societe Generale SA
in Sydney. ``We're approaching levels where we should start
finding some natural support in the Aussie. However, it's a brave
man who buys Aussie in this environment,'' he said referring to
the currency by its nickname. | Topic Tags: Australian dollar currency trading, carry trade, currencies FX trading, currency trading, down under currencies, FX trading, global recession | |
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