AUS and NZ Look Steadier with Global Commodity Price Hike

As Russia stood on the verge of a world war with Ukraine, the global economy faced some major changes in the chart as well. The political climate between the two countries led to an unusual hike in commodity prices worldwide, the primary reason for this being the uneasiness among investors. However, it turned out fortunate for large-scale exporters like Australia and New Zealand to reinstate their positions on the market. 

Australia is one of the major exporters of energy, thanks to the availability of coal and liquid gas in the country. New Zealand, on the other hand, is one of the primary exporters of commodities ranging from machines to natural products like dairy products and seafood. Furthermore, the Australian dollar also received significant propulsion from Euro’ fall as the political scenario between two Eastern European countries escalated. If you think it is the right time to invest in AUD, check out this review of the best Australian brokers.

The Australian currency has so far been resilient against the dominance of the United States dollar in the market. AUD posted a nominal climb and currently holds in the $0.72 range. Experts believe this performance by the AUD is on the positive side as the currency has shed its usual signs of sensitivity against the USD. If the currency dips, it will receive support at $0.7158. Resistance, on the other hand, will be available at around $0.7250.

After a slight stumble initially, NZD held strong in the market at $0.6704. As per the chart, support and resistance for NZD lie at $0.6680 and $0.6735, respectively. There are concerns about the possible policy changes in the Reserve Bank of New Zealand owing to the ongoing conflict between Russia and Ukraine. The popular claims state that the rising prices could also trigger inflation within the country despite what is considered an “aggressive move” in the market. Investors assume that this sudden surge is likely to cause inflation of around 0.25% to 1.0% of NZD. You can also explore more forex brokers NZ platforms & choose.

According to Imre Speizer Westpac, a 25 basis point rise is much more probable than a 50 due to the toughening cycles. Moreover, the Reserve Bank might change the projected cash rate up to 3% from the current 2.25%. The NZ$ 50 million bonds from the pandemic are expected to ease the position of the currency in the market. The Reserve Bank of Australia, too, has similar plans to revise some policies to prepare itself for the rapidly rising prices and to tidy up the balance sheets beforehand.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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