Analyzing which currencies perform best in an environment where interest rates fall and stocks rally, Bank of American Merrill Lynch says the Aussie is poised to weaken against the New Zealand dollar if the FOMC launches QE3. The pair softened after the Fed's latest minutes and last week's August jobs report, both of which signaled for further easing. Hard-commodities exporter Australia is also more vulnerable than soft-commodities exporter New Zealand to a Chinese slowdown since its demand for the latter is less "elastic," or responsive to price changes, says Merrill.
Find us on Google+
No comments:
Post a Comment