US in Chaos, Australian and New Zealand Dollars Surged


After all three of the major US stock indices went up yesterday, the 
markets risk appetite was also reflected in currencies: both Australian 
and New Zealand dollars surged yesterday, while the safe haven yen and 
US dollar dropped.To get more news about WikiFX, you can visit wikifx news official website.

  Fueled by central bank‘s stimulus and certain degrees of complacency, 
the stock market’s rally has been severely at odds with the fundamental 
situations, being termed as “surrealism” and “optimism” by some 
analysis.

  This upbeat sentiment has spread from US to the Asia-Pacific stock market.

  The Nikkei 225 index opened higher, which also boosted the 
risk-sensitive Australian and New Zealand dollars, while the US dollar 
and Japanese yen were flat overall.

  In terms of the Asian session, investors should particularly pay 
attention to the Reserve Bank of Australias interest rate decision. The 
RBA is expected to hold the cash rate at 0.25% unchanged and keep 3-year 
government bond yield target at 0.25%. The policy announcement is 
expected to trigger fluctuation of the Aussie.

  AUD/USD surged significantly after breaching above 0.6642, the 
previous resistance which has currently become a support level. The pair 
may again test the January high of 0.6911 and could even pass this 
level to challenge 0.7032, which is the highest in several months.




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