Tuesday, February 26, 2013

AUD & NZD Weak amid Risk Aversion Caused by Italian Election



Various Australian dollar notesThe Australian dollar extended the decline against its US peer as the indecisive outcome of the Italian election fueled the risk aversion sentiment among Forex traders. The New ealand dollar paused its drop, but remained weak as the nation’s trade balance posted an unexpected deficit.


No party had clear victory in the Italian election, which ended on February 25. This essentially created a hung parliament. Traders perceived it as one of the worst possible outcomes, resulting in a weak government that will be unable to deal with the country’s problems.


The New ealand trade balance showed the deficit of N $305 million in January after demonstrating the surplus of N $534 million in the preceding month. Analysts have expected a surplus of N $113 million.


AUD/USD fell from 1.0226 to 1.0217 and AUD/JPY dropped from 94.05 to 93.78 as of 2:46 GMT today. N D/USD traded at 0.8246 on today’s trading session after tumbling from 0.8334 to 0.8249 on yesterday’s session. AUD/N D went down from 1.2391 to 1.2381.


If you have any questions, comments or opinions regarding the New ealand Dollar,


feel free to post them using the commentary form below.





AUD & N D Weak amid Risk Aversion Caused by Italian Election

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