Daily Investment Tips

Australian Dollar hit a 29 years high against the US dollar in April 2011. The financial times of London is reporting: -

Short-term speculators have built up record bets on further gains in the Australian dollar, pushing the currency to fresh highs, as optimism over global growth and elevated commodity prices boost its appeal.

Factors driving Australian Dollar up

1. Currency speculators are buying Australian dollar contracts in record numbers. Data from the Chicago Mercantile Exchange,showed investors increased their bets on further gains in the Australian dollar to 90,938 contracts in the week to April 5.
2. Australia dollar is the highest yielding major currency. Investors are borrowing in US dollars, Yen and other major currencies and investing the money in Ausi dollars that is paying up to 4.75% annually.
3. Rising demand for Australian raw materials from China and India is also having an upward effect on Australian dollar.

Australian Dollar Forecast / Australian Dollar Prediction / Australian Dollar Outlook

With these factors all currency bets are the Australian dollar will continue to rise, at least in the short term.

written by Constantine Njeru \\ tags: Australia Dollar, Australian Currency, Australian Dollar, Australian Raw Materials, Bets, Chicago Mercantile Exchange, Commodity Prices, Currencies, Currency Speculators, Dollar Contracts, Dollar Outlook, Financial Times, Financial Times Of London, Global Growth, India, Investors, Optimism, Record Numbers, Times Of London, Yen