Australia & New Zealand dollar take a leap amidst US rate sank the greenback
It’s been a while US dollar seems to be in a ploy with several things causing the dollar to weaken over a period of time. Currently, due to ongoing tensions with North Korea & expectation has brewed for another long range missile launch for the 69th anniversary of North Korea founding on Saturday. Not only this, the Hurricane Irma has a possibility of hitting the US economy which causes a drop in prices. Recently an earthquake of magnitude 8 struck off the southern coast of Mexico late on 7th Sept’17 which has devastated the economy causing multiple deaths & toppled buildings, killing & injuring many people in Mexico. The pressure & worries about the impact of Hurricane Irma coupled with other things has shifted the investors’ attention towards the Australian & New Zealand dollars. The Australian dollar has broken its all time high since May 2015 reaching to a new high level of $0.8110.
Similarly, the New Zealand dollar has also jumped after five weeks of a continuous drop.
It is also been talked about in the market that speculators & investors are losing faith in the US President Donald Trump’s policies & plans to boost the economic growth and increasing the pace of interest hikes by the Federal Reserve.
With the current trend & the market behavior, it seems that the dollar may further go bearish & the greenback may jump higher if inflation index surprises on the upside.
Nevertheless, in a short run, the worries over North Korea and Hurricane has receded & it improves investor’s confidence in the dollar but dollar rebounds may be evaluated if it continues to gain in a long run.