Chinese Buying New Zealand

Do the Chinese have too much money? After promising to

earlier this week, New Zealand's Finance Minister Bill English has reported that a Chinese sovereign wealth fund is now looking to purchase his country's government bonds, according to

. The news may have had a strong effect on the New Zealand dollar, as it approached a three-year high following the release of English's statements. Speculation is that China is moving to diversify its massive foreign holdings and reduce its exposure to the U.S. dollar. English went further, stating that (in addition to China) Singapore, Malaysia and Hong Kong are also interested in New Zealand debt. Is this a sign that the U.S. dollar is losing its safe haven status? Or merely that China has a ridiculous amount of foreign holdings? Or both? Speculation that the dollar would lose its reserve status has been rampant since the financial crisis of 2008. On Wednesday, the United Nations warned that the

. Perhaps consequently, the dollar has largely been in a bear market since March 2009. Traders looking to play continued dollar weakness might consider PowerShares DB US Dollar Bearish Index (NYSE:

). UDN attempts to return a value inversely related to the U.S. dollar. Trades may also wish to consider CurrencyShares Australian Dollar Trust (NYSE:

). FXA attempts to return a value in line with the strength of the Australian dollar. The value of the Australian dollar has appeared to correlate to the value of the New Zealand dollar in the past, as the two economies are interlinked. FXA is trading higher Friday morning.