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3 Apr 2013
Forex Flash: Risk propensity mitigated as NZD/USD soars – BNZ
FXstreet.com (Barcelona) - The fallout surrounding risk was relatively limited across currency markets – indicative of such, the VIX index (a proxy for risk aversion), after briefly spiking to 19%, eased back to its recent lows around 12% by the end of the month. And despite the odd Europe-inspired hiccup, the US S&P500 index notched up another 3.6% increase in March, bringing the year-to-date gains to 10%.
Commodity prices and high-beta currencies like the NZD/USD also finished the month marginally higher than where they began. According to the BNZ Research Team, “While the less supportive global backdrop will limit the upside, supportive domestic fundamentals will continue to shore up the downside. We recommend the 0.8280-0.8450 range for the NZD in the near-term.”
Commodity prices and high-beta currencies like the NZD/USD also finished the month marginally higher than where they began. According to the BNZ Research Team, “While the less supportive global backdrop will limit the upside, supportive domestic fundamentals will continue to shore up the downside. We recommend the 0.8280-0.8450 range for the NZD in the near-term.”