The New Zealand and the Australian dollar went up as rumors about a credit market recover spread amid investors this Thursday.
After a substantial drop during the beginning of the week, the kiwi and the Aussie reversed their trends as the Credit Suisse Group AG, a leading credit provider in the financial sector, reported earnings during the first quarter. The main economies in Oceania are having rough times, with the IMF forecasting the highest contraction in these economies for a period of more than 20 years, a fact which can be mostly explained by a slump in global demands for commodities.
Analysts in Asia are rather optimistic about the eventual credit market revival, claiming that will it bring back stability for equity markets. Despite this weeks unfavorable reports coming from China, the general idea among traders is that the Aussie and the kiwi will strengthen as soon as economic conditions improve in Asia, a main consumer for Oceanian countries commodity production.
The NZD/USD traded at 0.5589 from 0.5535 in the intraday chart. The pair hit 0.5492 in the beginning of the week, after a Chinese economy slumping report on Monday. The AUD/USD also reversed the falling trend coming from 0.7024 to 0.7103. In Asia the NZD/JPY rose from 54.30 to 55.03.
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