Risk Currencies Seeing Some Action in Forex Trading

Even though U.S. markets are closed for the day, there are still things happening in forex trading. Indeed, the FX market is a global market, so there is plenty going on -- albeit in a subdued manner.

This morning, risk currencies seem to be doing well. The news that Japan is doing better than expected is helping some risk currencies that are putting off worries about China's efforts to limit growth. Indeed, with Chinese markets closed this week in observance of the New Year, some risk currencies are taking the chance to advance. 

Forex Trading Blog reports on what is happening with different risk currencies right now:

Aussie (AUD):  The Aussie is up on risk-taking and the China growth story in addition to reduced fears out of the euro zone.  In addition, news out of Japan that the economy grew more than expected is good for the region’s recovery prospects.

Kiwi (NZD): Like the Aussie, the Kiwi is benefitting from improved risk outlooks primarily from Japan.  The Kiwi has been one of the worst performers vs. the US dollar over the last month as risk appetite decreased due to the Greek situation.

Loonie (CAD):  The Canadian dollar is higher this morning as risk themes are playing out and a boost from the Olympics which started this weekend.   Investors gave the Loonie a vote of confidence as Bank of Canada Governor Mark Carney spoke this weekend about maintaining fiscal prudence and highlighting the fact the Canada has the lowest debt-to-GDP ratio of all of the G-7 countries.