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

    Top 8 Most Tradable Currencies

    Currencies can provide diversification for a portfolio that's in a rut. Find out which ones you need to know.
  2. Investing

    Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  3. Trading

    Currency Carry Trades 101

    This strategy can provide returns even if the currency pair doesn't move a cent.
  4. 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.
  5. Investing

    Bond Spreads: A Leading Indicator For Forex

    Here we examine some telling patterns in the relation between countries' interest rates and their currency pairs.
  6. 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.
  7. Investing

    Why Hedge Funds Are Shorting Australian Banks (CMWAY, WBK)

    Discover why hedge funds are shorting Australian banks, including key themes such as an overheated property market, bad debts and declining earnings.
  8. Investing

    3 Best High-Yielding Australia Bond ETFs (AUNZ, BOND.AX)

    Discover detailed analyses of the top three high-yielding Australian bond ETFs, and learn about their yields, duration and characteristics.
  9. Trading

    How Inflation-Fighting Techniques Affect The Currency Market

    Central banks use these strategies to calm inflation, but they can also provide longer-term clues for forex traders.
  10. Trading

    8 Basic Forex Market Concepts

    We go over some of the things you need to understand before you can trade currencies.
Frequently Asked Questions
  1. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  2. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  3. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
  4. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ...
Trading Center