How currencies performed in May
It's not often you see this: The Australian and New Zealand dollars were on opposite ends of the monthly currency matrix in May.
The pair generally rise and fall together but they widely diverged in May as the kiwi soared and the Australian dollar plunged. AUD/USD hit 1.0939 on May first then dropped 4.2% over the remainder of the month. It was halted by a 160 pip squeeze higher midway through the month.
Despite the huge move, the monthly chart shows it remains well within the range that was carved out in three months in mid-2015 (1.000 to 1.1400).
However in the shorter-term, oversold indicators are flashing buy signals.
As for the rest of the field, the euro and pound showed a similar kind of divergence and the US dollar was generally weak.
