With the Covid-19 Pandemic effects and the ongoing Russia-Ukraine Crisis, the Global economy is in agony. Inevitably, some currencies are crushed, yet the following currencies are still a good buy.
The US dollar indicates a strong bullish trend lately regardless of the Russia-Ukraine Crisis, unlike the Euro, Sterling, and Swiss Franc counterparts. It hiked by over 4.75% from its lowest in 2021 and is closing in on the key resistance level at $100.
The major cause for the DXY index rise is the general rush to a haven as the Russian-Ukraine crisis continues. Putin’s government has faced massive resistance from the country, and some analysts believe he will lash out and keep shelling civilians.
Moreover, recent data indicate a growing US economy but with Inflation concerns. Thus, the Fed may increase interest rates this month.
The AUD/USD pair rose to its highest level in a few months, and analysts predict that the country will gain from the crisis due to its ample natural assets.
For example, Australia is a leading producer of natural gas. This means that the country will likely see more demand in the coming months as countries avoid Russia. Also, the Australian dollar is often viewed as a commodity currency. The Bloomberg Commodities Index has risen to the highest level in more than 12 years.
Presumably, Australia will grow its natural gas market which diverts from Russia. Moreover, the Australian dollar is perceived as a commodity currency. The Bloomberg Commodities index is at its highest in more than 12 years.
New Zealand dollar
The NZD/USD is trading at 0.6900, its highest point since last year and 5.5% above its lowest this year. The past few weeks have seen the pair solidly rising.
Like the AUD, the New Zealand dollar is perceived as a commodity currency. Critical commodities back the economy like the dairy industry. Moreover, the country is more often resistant to regional concerns. There is also a possibility of the Reserve Bank of New Zealand adopting a hawkish policy.