Today both the Australian and New Zealand dollars continued their daily growth against their counterpart from the United States on willingness of the Forex traders to earn from the interest rates difference.
The Australian dollar gained yesterday after the Federal Reserve announced an emergency rate cut from 4.25% to 3.50%. It also continued to gain today through the most of the Asian trading session, but has already went down past the daily opening price.
Both Australian and the New Zealand dollars gained today on a presumption that the international investors bought Australia’s and New Zealand’s government bonds as their premiums yield more than their U.S. and Japanese counterparts.
Australian dollar improved its positions against U.S. dollar and Japanese yen today after the very successful Asian/Australian stock markets session and some promising report on the country’s economy.
Aussie was on a rising edge today on the better investors sentiments, spurred by the recent stock markets growth. Australian dollar gained against both dollar and Japanese yen - its main carry trade counterparts.
Australian dollar gained against other currencies - about 1% against U.S. dollar and more than 1.1% against Japanese yen, yesterday after U.S. President George W. Bush stated that government will act to prevent the further damage from the mortgage financing crisis and to help those already hurt by the crisis consequences.