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.
Two days ago Federal Reserve lowered its benchmark interest rate by 50 basis points to 3.00%, widening the gap between the record high interest rate in New Zealand. Australia remains one of those countries that may decide to rise interest rate soon to fight the domestic inflation. These factors press on the U.S. dollar and make Aussie and Kiwi dollars more attractive for the investors.
NZD/USD rose from 0.7874 to 0.7906 today during the Asian trading session. The New Zealand dollar was rising every day of this week gaining over 240 pips in total.
The Australian dollar rose from 0.8955 to 0.8995 today, posting a preliminary weekly gain above 200 pips.
If the existing trend in the interest rates will continue to dominate in the global economy, the U.S. dollar is risking to substitute Japanese yen for the carry trade favorite short currency.
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