The risks are NZD and.
They are considered risky currencies for the following reasons: 1. Commodity linked currencies Australia exports to gold, coal and iron ore.
Canada exports more than 90 percent of its oil.
As the world continues to grow, demand for goods will rise.
As a result, the Australian and Canadian economies will improve further.
When investors feel positive and buoyant about the economy, they expect growth.
This naturally boosts demand for goods.
2. High AUD and NZD have the highest interest rates among the seven major currencies (£¬£¬£¬£¬ AUD, NZD, and CAD).
This means that if you deposit in Australian or New Zealand dollars, you will get a higher return than if you deposit in other major currencies.
When investors feel the economy is humming, they will invest in higher-yielding currencies.
