AUD to £ - back to 2.65 - anyone know why?
Mar 13th 2003, 4:40 am
#31
Banned
Joined: Aug 2002
Location: Perth Arse end of the planet
Posts: 7,037
Originally posted by porkchop
I hope Pb dont read this as he is not clever enough to work out for himself which way it needs to move.
The other theory for the rate change is to encourage some decent upstanding UK citizens in to Aus.
:PARTY:
'Id rather be handsome than rich'
I hope Pb dont read this as he is not clever enough to work out for himself which way it needs to move.
The other theory for the rate change is to encourage some decent upstanding UK citizens in to Aus.
:PARTY:
'Id rather be handsome than rich'
When will the decent upstanding UK citizens arrive still waiting for that?
Last edited by pommie bastard; Mar 13th 2003 at 6:32 am.
Mar 13th 2003, 5:25 am
#32
Forum Regular
Joined: Jul 2002
Location: Tokyo, Japan
Posts: 207
Originally posted by The American
Thanks for this info John, have been checking out xe.com all day for NZ$ rate, saw it as low as US$.5435. We just finalized our mortgage refinance today, but forgot we have to wait 4 days to get our equity monies out of it - so we're ALMOST ready to start dealing...
If you come across any more info of this kind, please post it! Just wish I understood exactly why 'investor appetites for higher yields' would be waning. What other options have investors got at the moment that would be preferable to 'higher yields'? Confused here... Thought the whole point was that NZ$ is low risk/high yield at the moment?? Or is it concern that the NZ$ is getting close to its 'ceiling' and therefore despite high interest returns may pose loss when 'converted back' if NZ$ falls?
TA!
Thanks for this info John, have been checking out xe.com all day for NZ$ rate, saw it as low as US$.5435. We just finalized our mortgage refinance today, but forgot we have to wait 4 days to get our equity monies out of it - so we're ALMOST ready to start dealing...
If you come across any more info of this kind, please post it! Just wish I understood exactly why 'investor appetites for higher yields' would be waning. What other options have investors got at the moment that would be preferable to 'higher yields'? Confused here... Thought the whole point was that NZ$ is low risk/high yield at the moment?? Or is it concern that the NZ$ is getting close to its 'ceiling' and therefore despite high interest returns may pose loss when 'converted back' if NZ$ falls?
TA!
The only explanation I can think of is that when there's an imminent event that could cause massive swings in stock/currency/oil/gold prices all over the world, a 5.75% annual yield starts to look pretty insignificant.
John
Mar 13th 2003, 8:15 am
#33
Forum Regular
Thread Starter
Joined: Nov 2002
Location: Mona Vale, Sydney
Posts: 261
Originally posted by jseni01d
Quote from Financial Times today (http://news.ft.com/servlet/ContentSe...=1012571727201):
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Risk aversion appears to be sapping the strength of the "commodity currencies", which have been among the best-performing of the year.
The Australian dollar, which reached a 49-month high of US$0.617 this month, was at US$0.594 on Wednesday while its New Zealand counterpart was at US$0.548, down from a 46-month high at US$0.566.
With interest rates at 4.75 per cent in Australia and 5.75 per cent in New Zealand, the currencies had benefited from investor appetite for higher yields but, said Michael Metcalfe at State Street Bank, that is waning.
"Our risk appetite indicator has been in risk-neutral territory for seven consecutive days and the correlation between currency performance and yield has turned negative for the first time since September," said Mr Metcalfe, who added that a further rise in risk aversion could send the pair lower still.
"Judging by their correlation with risk appetite in the past 12 months, the Australian and New Zealand dollars would be the most vulnerable major currencies."
----
Cheers,
John
Quote from Financial Times today (http://news.ft.com/servlet/ContentSe...=1012571727201):
---
Risk aversion appears to be sapping the strength of the "commodity currencies", which have been among the best-performing of the year.
The Australian dollar, which reached a 49-month high of US$0.617 this month, was at US$0.594 on Wednesday while its New Zealand counterpart was at US$0.548, down from a 46-month high at US$0.566.
With interest rates at 4.75 per cent in Australia and 5.75 per cent in New Zealand, the currencies had benefited from investor appetite for higher yields but, said Michael Metcalfe at State Street Bank, that is waning.
"Our risk appetite indicator has been in risk-neutral territory for seven consecutive days and the correlation between currency performance and yield has turned negative for the first time since September," said Mr Metcalfe, who added that a further rise in risk aversion could send the pair lower still.
"Judging by their correlation with risk appetite in the past 12 months, the Australian and New Zealand dollars would be the most vulnerable major currencies."
----
Cheers,
John
