Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
|
 |
| November 01, 2006 | | Australian dollar receives benefit of bond market; place spread bets and CFDs accordingly | Thanks to higher bond yields on Austrialian bonds, the Aussie is surging in currency trading. Spread betting and contracts for differences should take this into account, on both the bond market and the FX market. Bloomberg reports:
The Australian dollar surged to the
strongest in almost six months as investors sought the higher
yields available on the nation's government bonds, which widened
to a 15-month premium over U.S. Treasuries.
Demand for the currency, which gained 2.9 percent last month,
is being supported by bets accelerating inflation will spur the
Reserve Bank of Australia to raise borrowing costs next week. A
government report today showed building approvals in September
surged three times what economists forecast.
``People will focus on the yield differential and that will
drive the Australian dollar higher,'' said Nick Waite, head of
foreign-exchange trading at Citigroup Global markets Ltd. in
Sydney. ``It may re-test its year-high'' in coming weeks. | | |
|
|
