AU, NZ currencies surge as economies reopen

AU NZ currencies soar

Countries that have effectively contained their coronavirus outbreaks are now ready to reopen their economies and their currencies are gaining as a result.

Australia, New Zealand and South Korea are some of the very few nations that have successfully managed to contain the spread of the coronavirus infection. Their success has helped to lift investor sentiment and resulted in stronger currencies.

While many of Australia, New Zealand and South Korea’s Asian Pacific neighbors are still struggling to contain their outbreaks of the novel coronavirus, these countries are now looking at gradually reopening their economies in the coming weeks.

As a result, their currencies have surged from levels seen in recent months when the outbreak struck the Asia Pacific region.

Successful Coronavirus Containment good for Currencies, Irvine Humphries

Ken Lien, managing director of foreign exchange strategy at BK Asset Management and economic experts at Irvine Humphries Global say New Zealand and Australia have been more successful than most countries at curbing the spread of infection and can now consider safely returning to normal economic activity.

Despite disappointing PMI readings recently, the Australian dollar gained significantly after the Prime Minister announced that the country was ready for a Covid safe economy.

The readiness to resume economic activity was a strong indicator that these countries are far ahead of its developed peers and this will likely have a good impact on their currency in the coming months.

The US has so far reported the largest number of cases in the world and some experts question whether the peak has yet been reached. The idea that Asia has been more efficient in its overall dealing with the virus is taking hold and many investors are looking at Australia and New Zealand with greater optimism amid the crisis.