Australian strength livens Kiwi FX market

Media Release

18 October 2010

Australian strength livens Kiwi FX market

Continued movement of the strong Aussie dollar against the US has seen a dramatic influx of activity over recent weeks on the FX market by savvy Kiwi traders.

The large increase in client positions opening on the back of consistent growth of the AUD is a trend which Chris Smith, General Manager of leading online trading company CMC Markets, believes will continue in the coming weeks.

“With the Australian nearing parity with the Greenback and fluctuation in confidence levels in the past week, we’re starting to see a clear divide in where our clients feel this pair is trending,” he says.

“Activity has been generally bullish. There has been a significant increase in clients opening positions and existing clients taking up much bigger positions in the past weeks on the back of the continued strength of the Australian dollar.”

“Not everyone has backed the Aussie to continue the same upward trend however,” says Smith, “with the majority of customers taking up short positions as they try to find the top of the market, believing the current 99 cent mark to be the point at which the Australian will fall.”

Clients have also begun to look to the NZD pushing higher against the US with quantitative easing expected to be officially announced by the Federal Reserve in their upcoming 2nd November meeting weighing on the USD.

CMC Markets online FX trading platform allows customers to trade all the major currencies in the world’s most liquid market 24 hours a day. Those interested in entering into FX or CFD trading are encouraged to attend a free seminar to learn more about leveraged trades before taking up a position.
 
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