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Central Banks’ Accommodative Policies Make Aussie Stronger

October 28, 2013 at 9:44 by Vladimir Vyun

A heap of Australian dollarsThe Australian dollar advanced today on speculations that central banks around the world will maintain monetary accommodation. Hopes that China will continue to show sustainable growth also helped the currency.

It is expected that the Bank of Japan will keep its extremely accommodative policy intact this week and the Federal Reserve and the Reserve Bank of New Zealand will do the same. Such speculations support demand for the Aussie among carry traders, though its appeal was hurt by possibility of an interest rate cut from the Reserve Bank of Australia. Forecasts of continuing manufacturing expansion in China added to the strength of the Australian currency.

AUD/USD rose from 0.9584 to 0.9616 and AUD/JPY advanced from 93.50 to 93.92 as of 9:44 GMT today.

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