Guys can someone explain to me why AUD and NZD are called risk sensitive currencies
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try this article for an explanation
Risk is common in this market. You have to make a good plan to minimize your risks.
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Australia is a commodity country - if the world economy is likely to decline then the demand for commodities such as iron will likewise - (Iron ore is the Aussie largest export).
Then again China is Australia’s largest export country by far and any possible decline in that country’s economic fare will impact on Australia.
Risky or what?
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Thank you for the article it real helped
Great share. That article is from 2019. Do you think the ideas shared are still relevant about the two counties today?
There must be a risk in trading but I wanted to know why AUD and NZD are risks sensitive.
The Relative Strength Index on the four-hour chart is just below 30, thus in oversold territory.
That implies a bounce is imminent, yet it could be short-lived. Euro/dollar is suffering from significant downside momentum and trades well below the 50, 100 and 200 Simple Moving Averages.
Support awaits at the new 2021 trough of 1.1560, followed by 1.1510 and 1.1450.
Some resistance is at 1.1610, where a recovery attempt was thwarted on Thursday. Further above, 1.1660 and 1.1680 are awaited.
Did you read the linked article?
AUD is known to be the riskiest currency to trade. AUD is highly volatile because of its unique economy. And yes, both NZD and AUD have a close relationship with gold prices and oil prices. This could be a possible reason why they are called risk sensitive currencies.
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No, I haven’t read the article. But when you say I read it.
It might not apply any longer as these two pairs have been trending vigorously the past few weeks. Our analysts have given AUD/NZD the title of currency pair of the week to highlight the common themes we have noticed when traders would find beneficial to note. Although physically very close, AUD and NZD act more like competitors rather than companions. There are two ways to analyst the recent price movement of the currency pairs. Take a look to learn more.
I’m confused. Would a rate hike by the RBNZ be good or bad for AUD/NZD. I’m thinking it moves down if that happens, because a rate hike would be good for NZD, but what’s good for NZD is bad for AUD/NZD. Do I have that right?
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What if its a buy the rumor sell the news kind of effect? 
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Now there’s the parrot on my right shoulder talking.
As the left parrot says “go on, do it. You know you want to!”
Exactly, this is something we should think about.
In theory, AUDNZD should have moved lower. However after the RBNZ meeting, the pair moved higher. Because it was so anticipated, it turned out to be a “buy the rumor, sell the fact” trade, where traders who were long NZD going into the meeting got stopped out because the result was “as expected”.
Can you shed some light on this statement