Rising Star for AUD

Now, AUD reached its highest position relatively to USD. 1 Aussie cost 83.22 U.S. cents and it is expected that forex trading will bring AUD to its 2009 high.

Aussie’s rise relatively to USD was provoked by the optimistic declaration of Glenn Stevens from Reserve Bank of Australia that Australian economy was recovering faster than economists supposed, has provoked Besides, RBA representative marked that home prices should go up because of the fact that interest rates are low. In their turn, interest rates fell to 3 % because of suspicions that RBA could reverse its monetary policy.

But, it is necessary to notice that at the moment dollar positions on forex market went down not only against the Aussie. Dollar became weaker in comparison with the most part of other major currencies. For example, now people buy 94.87 yen for one dollar, and at the beginning of the week it was 95.26.

The index of American currency fell from 78.684 to 78.451.
As for EUR, now one EUR costs 1.4277 dollars (it rose from 1.4235). Pound costs $1.6533 ($1.649).

No Change for Australia Cash Rate

The major economic event for today is RBA`s meeting and announced decision on its interest rate. The Reserve Bank of Australia (RBA) left its key cash rate at a record low of 3.0 percent and also noted that the domestic economy was not as weak as expected just a few months ago and saw first signals of stabilization in Australia`s economy.

For a third straight month the RBA did not change the interest rate level. The RBA has maintained official interest rates at the lowest point for 49-year period of 3 percent, amid signals that the world economy is stabilizing and that Australia`s inflation will continue to decline. According to Glenn Stevens, RBA governor, the board's current view is that the outlook for inflation allows some scope for further easing of monetary policy.

According to many market analyses prior the RBA meeting the rate was to remain at the same point till the end of 2009.