Australian/New Zealand Dollar (AUD/NZD)
Central Bank: Reserve Bank of Australia / Reserve Bank of New Zealand (RBA/RBNZ)
Current Interest Rate: http://www.rba.gov.au/ and http://www.rbnz.govt.nz/

A Popular Carry
Offering one of the highest interest rates in the major global markets, the Reserve Bank of Australia has always maintained its stance of price stability and economic strength as cornerstones of its long-term plan. Headed by the governor, the Australian bank's board is made up of six at-large-members, along with a deputy governor and a secretary of the Treasury. Jointly, they work toward an inflation target of between 2-3%, while meeting nine times throughout the year. In addition, the Reserve Bank of New Zealand looks to promote inflation targeting in the hope of maintaining a foundation for prices.

Both of these currencies have become a focus of carry traders, as the Australian and New Zealand dollars (AUD and NZD) tend to offer the highest yields of the major currencies available on most platforms. Consequently, volatility can be experienced in these pairs if a deleveraging effect takes place. Usually however, the currencies tend to trade in similar averages of 30-40 pips, like the other majors. Both currencies also maintain strong relationships with commodities, most notably gold and silver. (Read more about carry trades and the AUD in Turn To The Carry – A Different Flavor Of The Setup.)



South African Rand

Related Articles
  1. Trading

    Currency Carry Trades 101

    This strategy can provide returns even if the currency pair doesn't move a cent.
  2. Trading

    The Australian Dollar: What Every Forex Trader Needs To Know

    With its unique relationship to the Japanese yen, the AUD is an important currency for FX traders.
  3. Retirement

    Are You Rich Enough to Retire in New Zealand?

    New Zealand is beautiful and welcoming to retirees – but only if they bring a healthy bank account. See how you measure up.
  4. Trading

    Canada And Australia Dollars To Be Reserve Currencies

    The IMF upgrading the Canadian and Australian dollars to "official" reserve currency status is a recognition of reality.
  5. Investing

    The Top 3 ETFs For Investing in Australia

    Learn about some of the best performing exchange-traded funds that investors use to obtain exposure to stock investments in Australia.
  6. Trading

    8 Basic Forex Market Concepts

    We go over some of the things you need to understand before you can trade currencies.
  7. Insights

    Is It Time to Invest in Australia?

    Australia a country rich in natural resources and one increasingly gaining attention from investors. Is it time to put some of your international allocation to work in Australia?
  8. Investing

    3 Australian Mutual Funds to Avoid

    Learn about several catalysts that may have a negative effect on the Australian economy. Discover three mutual funds to avoid in 2016.
  9. Insights

    A Primer On Reserve Currencies

    For nearly a century, the U.S. dollar has served as the world's premier reserve currency, but the future is uncertain.
  10. Trading

    How CPI Affects the Dollar Against Other Currencies

    The Consumer Price Index is a broad measure of inflation, and inflation can have a dramatic impact on a currency's value against rival currencies.
Frequently Asked Questions
  1. What are Common Examples of Monopolistic Markets?

    Discover what causes real instances of market monopoly, how it persists and where monopoly privilege is most common in the ...
  2. What is the gold standard?

    The gold standard is a monetary system where a country's currency or paper money has a value directly linked to gold, but ...
  3. What's the most expensive stock of all time?

    The most expensive publicly traded stock of all time is Warren Buffett’s Berkshire Hathaway.
  4. What is a "socially responsible" mutual fund?

    As the name suggests, socially responsible mutual funds invest exclusively in socially responsible investments.
Trading Center