Higher yielding currencies at threat – TD Securities

FXstreet.com (London) - Research teams at TD Securities have suggested the higher yielding currencies that have benefited from QE in recent year are most at threat from less accommodation.

AUD and NZD in negative focus

They say this includes EM currencies in particular, and the AUD and NZD among the majors (AUD reaching fresh lows since September 2010, and the NZD at the lowest level since last summer). Furthermore, they say the soft data from Australia overnight did not help, but the real issue is the USD right now. The RBNZ on Thursday is not expected to help tame the NZD’s selloff either.