They are jumping off the Aussie & Kiwi Dollars like a burning shipwreck.

The Aussie Dollar, Aussie Bonds and the Aussie share market has been offering investors solid returns for a number of years now. International investors who live in countries that have extremely low interest rates have been enjoying investing in Australia and New Zealand where they have been able to achieve higher returns on investment and do it relatively safely and securely. For example buying the AUD is a positive carry trade of 2.5% annually, buying 10 Year Australian Bonds delivers around 2.5% to 3.5% annually depending on the type of Bond you buy and many blue chip shares in both countries have been delivering similar or better dividends. Hence when international money comes into our financial markets to buy these products it not only helps support bond and stock markets it also helps support the AUD and NZD simply due to the fact you need to pay for your purchases in Aussie or Kiwi Dollars.

But recently we have seen the tell-tale signs that many of these investors are bailing out of Australia and New Zealand and the reason why is very simple. If you buy a bond, invest in Aussie or Kiwi Dollars or are relying on a dividend from the share market, the price you pay for that investment is important. If it falls in value beyond what your dividend is going to be annually you are losing money. And that is exactly what is happening to many international investors who have bought the AUD or NZD, Aussie or Kiwi Bonds and Aussie or Kiwi Shares.

Want to learn more about investing in the Australian Dollar? Register to attend the free weekly coaching from LTG GoldRock in their online Trading Room.