After one of the worst weeks for the U.S. dollar and the attraction of the large capitals to the
AUD/USD touched 0.9496 two days ago it was the highest level since March 1984. The overall weekly gain wasnt very impressive (under 0.9%) because the currency pair corrected significantly on Friday.
Aussie remained the second best performing currency against the U.S. dollar among the 15 most traded currencies in February, as the Fed cut the interest rates and the participation in carry trade against dollar increased.
The yield advantage of holding the Australian dollar over the U.S. dollar is currently very attractive 4.00% now and a high probability that the Fed will make it even wider (4.50%) in March. The high interest rates in Australia are the main reason, which will keep the national currency strong in the near future.
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