Kiwi Heads Higher in Currency Trading

Risk trade comes roaring back

The risk trade is coming back today, after taking a breather. One of the biggest reasons that the risk trade is back is thanks to the New Zealand dollar. The kiwi is heading higher in currency trading on the FX market, thanks to demand in Asia.

Asia, particularly China, represents one of New Zealand’s main markets. With signs of economic recovery coming, it is no surprise that demand in Asia for New Zealand’s goods is rising. One of the biggest factors right now is the price of milk. With milk rising, and Asia importing a great deal of its milk from New Zealand, it is little surprise that the kiwi is doing well in currency trading.

Right now, the carry trade is moving back into vogue, with the dollar carry trade leading the way. While this state of affairs may not last terribly long, it is clear that for now, the risk trade is back.