Excerpt from: Forex News
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| October 14, 2008 | | Aussie in FX trading on the currency market | The Australian dollar is gaining in currency trading on the FX market today. Thanks to various bank rescue efforts by governments around the world, the Aussie is finding itself supported in FX trading on the currency market.
The Australian dollar relies heavily on the performance of the world economy and of stock markets. This is because, as a commodity currency, the Aussie is influenced by how much the world can afford to buy.
Another consideration for the Australian dollar is the fact that it is a high yielding currency and part of the yen carry trade. As stability returns to the markets, there is a great chance that risk appetite also returns, improving demand for the Australian dollar. Bloomberg reports on risk appetite and the Aussie in FX trading:
``Collectively all these measure help with risk appetite,''
said Besa Deda, acting chief economist and strategist at St.
George Bank Ltd. in Sydney. ``The Aussie dollar will still be
subject to volatility. If we see a number of up-days in equity
markets going forward that might provide the currency with some
support,'' she said, referring to the currency by its nickname. | Topic Tags: Aussie FX trading, Australian dollar currency trading, currency trading, currency trading FX market, FX trading, FX trading currency market | |
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