Australian Dollar Rises on Global Economy Optimism

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.
Going through the upper average range of the previous week for AUD/USD was significantly helped by the yen depreciation, based on the new wave of carry trade entries. If Federal Reserve will decide to lower the interest rate by 50 basis points to 4.00% tomorrow, the rate difference for AUD/USD currency pair will reach the 2.75% in the favor of the Australian dollar.
AUD/USD is in a mid-term falling trend since the early November of 2007.  Mostly, the days of growth for this pair since then were connected with peaks of the commodities (mainly metals) demand by the Chinese and United States economies. Today’s growth can’t be treated as the recovery from a bearish trend for Aussie, but many economists are convinced in the long-term attractiveness of the Australian currency.

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