The Australian dollar has been struggling recently, but there is some speculation that the Down Under currency could get some help moving forward. The carry trade might provide a basis for some success for the Aussie. The move isn’t likely to result in big gains for the currency, though, and Aussie is currently mostly lower.
Things have been difficult for the Aussie recently. With commodity currencies suffering from the choppy performances of oil and gold, the Australian dollar hasn’t had a lot of support. On top of that, China has been struggling, and that hasn’t been helpful to the Australian economy. So far, there isn’t much to help the Aussie.
Some analysts think, though, that the carry trade might help a little bit. Australian dollar is popular because it works well as a purchase currency. A trader can buy a currency like the yen or the euro for a rate near zero (or even negative, with the yen), and then earn money when they use those currencies to buy Aussies with their higher return.
It’s probably not enough for a breakout, but the carry trade could provide some support to the Aussie through the end of the year.
At 14:22 GMT AUD/USD is down to 0.7499 from the open 0.7566. AUD/JPY is down to 76.75 from the open at 77.06. AUD/NZD is up to 1.0294 from the open at 1.0289.
If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.
