Aussie Reaches 2-Month High versus Dollar

The Australian dollar rose slightly against the U.S. dollar and reached a new 2-month high level today as the dollar still suffers from the near zero interest rates set yesterday by the Federal Open Market Committee.

The Australian currency rallied by the most since October after the Fed announced the rate cut yesterday and the global stock markets reacted with the growth. The demand for the high-yielding assets went up as the cheap dollars will provide markets with enough liquidity.

Analysts believe that the Fed’s decision will help the U.S. economy to gain a second breath and overcome the most important troubles. On the other hand the rates floating between 0 and 0.25 percent is a huge negative factor for the U.S. dollar, which will benefit such high-yielders as the Aussie and the NewZealand dollar.

AUD/USD rose from 0.6932 to 0.6935 as of 10:00 GMT today and reached its daily maximum at 0.7024 — the highest level since October 21. AUD/JPY fell from 61.63 to 61.28.