Forex Investment and Currency Trading

The AUD/USD and NZD/USD are still struggling to keep up with the EUR/USD’s moves higher. Weak commodity prices are continuing to hold back the commodity currencies a little. Note that Australian export commodity prices actually declined last week, but a lower VIX index (indicating some improved risk appetite) likely helped the cyclical currencies move higher against the USD.

Do not expect a lot of volatility from these currencies in the shorter trading week and the bias is to sell them.  The NZD may see some limited movement from local events. Current account data released this morning were in line with market expectations and had little impact on the NZD. Market expects Q3 GDP data released tomorrow to record its third consecutive contraction in GDP.