Every adversity brings with it the seed of an equivalent advantage

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Greece rejects 5-month extension, talks are not going well


The latest proposal from the Troika has also been rejected. They offered a $17.3 billion proposal today and right away Tsipras was talking blackmail and whatnot so news of the rejections shouldn't come as a big surprise.
The Troika is trying to push through a short-term extension because time is on their side. Tsipras is strong politically right now but in 5 months he might be weaker and that's what the Troika is betting on. Tsipras knows he has a fairly strong hand right now and wants to negotiate a longer-term deal.
The turmoil in Europe, centred around the threat of Greek defaulting on its debts, is driving investors towards the still high-yielding Aussie and Kiwi. While both of Asia's main commodity currencies have central banks looking to erode their attractiveness by loosening momentary policy, they are both still attractive to yield seekers. The official cash rates of NZ and Australia stand at 3.25% and 2% respectively as most other developed countries hover at or near 0%.
The Kiwi and Aussie were the best performing currencies in the G10 basket against the US dollar this week, despite an almost complete lack of NZ and Australian economic data or events. So, what's driving the market to load up on what was an almost toxic currency only last week?
This drive away from European countries doesn't only affect the Aussie and Kiwi, but their attractive yield status makes them an obvious target. It's worth noting that both the Kiwi and Aussie are historically risky currencies, so they don't seem the obvious choice for money flowing from European currencies, but investors are running out of options. The US Dollar, Yen and CAD are all benefiting from the slow push away from European currencies, but they don't look as attractive from a yield perspective.
The RBA and RBNZ don't want a stronger currency
Ironically, this increases the chance that the RBNZ and RBA will erode that yield attractiveness. Neither central bank wants a strong currency, in truth their members spend a lot of time attempting to do the exact opposite. Earlier this morning the RBNZ released a statement saying that the NZ Dollar persists at an unjustifiable level, which may even be an attempt by the central bank to deter more yield seekers from the Kiwi.
Chinese Stock Plunge Leaves State Media Speechless...
If you are a serious trader and concerned about your financial well-being you must prepare for next week.
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