The Australian dollar is profiting from speculations that a new series of interest rate hikes is likely to follow in the South Pacific nation, as its economy continues to improve, allowing the currency to gain versus its main rivals on
After the global slump worst moments passed last year, Australia was the first relevant economy to raise its borrowing costs, allowing the Aussie to be one of the best performers last year in currency markets. Currently, interest rates in Australia are the highest among the 6 main traded currencies in forex markets, but a comment made by an Reserve Bank of Australian official suggesting that the current levels are need to be raised to reach normality allowed traders to be more optimistic regarding a new series of rate increases, which according to analysts, is likely to commence next month.
The interest rate speculations in Australia are far more positive than in most of the world’s wealthy nations, and at the moment, only the greenback is experiencing a similar optimism, yet, to a lesser extent. The Aussie may gain on its interest rate hikes, but it’s necessary that the global demand for commodities continue to grow, allowing the South Pacific economic to be dynamic making the RBA to take more hawkish positions.
EUR/AUD fell to 1.5093 as of 18:32 GMT from an opening rate of 1.5128. AUD/USD remained rather stable at 0.8995.
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