Forex focus: what the future holds for the expat currencies And all four countries benefit when FX traders are happier to take on more risk. They will benefit and sterling will stutter "if global risk appetite is boosted by the introduction of an ECB bond-buying scheme or a third round of QE in the US," says Josh Ferry Woodard of TorFX. This is not to say that these currencies move in tandem - local factors have an impact. The dollar is close to all-time highs and many forex commentators think it is overvalued given that coal and iron ore prices have been plummeting. Charles Purdy of Smart Currency Exchange thinks "it is only a matter of time before we see it lose ground." But against this is the fact that central banks are buying Australian dollars. Chris Applin of UKForex says: "It has attracted the attention of central banks and sovereign wealth funds which are looking to diversify into 'non-traditional" reserve currencies. It is my view that the AUD's decoupling with commodity prices will remain a key theme, with the investor search for (real) yield and safety trumping all else. "Canada has been one of the better performers in the G10 space over the past few months," says Jeremy Cook of World First, "as the US economy has continued to drive onward, albeit at a slower pace than at the beginning of the year." David Kerns of Moneycorp points out that it's the "most resilient" of the commodity currencies. Also its relatively stable economy will benefit from any improvements in the US. Even though its dollar has followed a similar pattern to Australia, it is not as reliant on China, given that its major exports are soft commodities such as wool, meat and milk. Michael Derks of FxPro says: "The Kiwi is rather interesting and is differentiating itself from the Aussie. Their major exports are agricultural and their prices have been steadier. As a result, some traders have been buying Kiwi against the Aussie. But HiFX's Chris Towner believes it is "deeply overvalued" along with the Aussie. Even though it is helped by a strengthening gold price, it is economically and politically unstable. Unlike the others, the rand is at its weakest level against the pound since 2009. Robin Haynes of Currency Index says: "The rand is one of the most volatile currencies on the market. It is not uncommon for it to move by over 1pc in a day. Purdy points to problems from its workforce becoming more militant and demanding higher wages. The shooting of demonstrating miners has hurt its reputation, adds Cook, making the rand "unloved." Forex focus is sponsored by