The Australian dollar is currently heading for a first weekly gain against the U.S. dollar this year as the traders believe that the bottom in the interest rates is near and the countrys economy will begin recovering soon with the help of the governments stimuli.
The Aussie grew for a third day in a week after the Reserve Bank of Australia signaled that the fiscal measures combined with the recent monetary policy easing will help the national economy to recover. The currency traders reacted to this statement as to the possible end to the interest rate cuts in Australia. Another positive signal for the AUD was the growth in the Asian stock markets, which boosted the attractiveness of the high-yielding currencies.
At its record low 3.25 percent, the Australian policy interest rate remains high enough to be attractive for the yield-aimed investors, while being low enough to stimulate growth and deter the price deflation. The government is expecting the national GDP to grow this year, which will definitely make Australian markets more attractive than some of the developed nations.
AUD/USD rose from 0.6514 to 0.6582 as of 8:30 GMT today. AUD/JPY advanced from 59.33 to 60.17 and AUD/NZD went up from 1.2633 to 1.2675 today.
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