Forex Blog: Currency Trading News & Analysis.

June 21st 2005

Australian Dollar continues to appreciate

Among the world’s major currencies, it seems the Australian Dollar is currently the most stable. Uncertainty surrounding the future of the EU has sent the Euro on a sharp downward spiral. Meanwhile, the persistence of the twin deficits continues to vex the US, and Japan has barely emerged from the throes of a multi-year recession. In contrast, Australia’s economy is one of the healthiest and most stable among developed nations, and its interest rates are the highest in the developed world. Additionally, commodity prices are soaring, and inflation remains low. The Australian Dollar may be buoyed in the coming months by signs the Fed and European Central Bank are tightening monetary policy, which is likely to attract risk-averse foreign investors. The Australian Financial Review reports:

With the two major global currencies so much out of favour and the Australian currency’s traditional drivers all flashing green, traders and speculators are finding they need little excuse to load up on the $A.

Read More: $A Cast as Belle of the Ball

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Posted by Adam Kritzer | in Investing & Trading, Major Currencies | No Comments »

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© 2004 - 2024 Forex Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.