Both Australian and New Zealand dollar continued to rise today after the yesterdays fast growth as the investors remained confident in the stock markets improvement and in the carry trade.
The most notable losers against the Aussie and Kiwi for today are the Japanese yen and the U.S. dollar. Both currencies have the significantly lower interest rates associated with them than the ones on AUD and NZD.
The yield advantage on the short-term Australian papers over the short-term Japanese securities grew above 5.50% and is now very attractive even during the times of the elevated global financial risks.
AUD/JPY rose from 91.26 to 91.97 today; last week it closed at 89.82. NZD/JPY rose from 80.33 to 80.80 today; last week it closed at 78.77. AUD/USD posted a bigger gain today it went from 0.9074 to 0.9140; on Friday it closed at 0.9019. NZD/USD rose to 0.8035 from 0.7990 today after the last weeks close at 0.7924.
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