Australian Rate Remains at 3%

Will the Aussie be able to maintain its yield in forex trading?

One of the things that has made the Australian dollar so popular in currency trading on the FX market in recent months has been its relatively high yield. Of the industrialized nations, Australia has the highest yield at 3%. Today, the Reserve Bank of Australia left its rate at 3%, citing still-robust inflation.

However, there are concerns about how long Australia can keep its yield so high. Economic data is starting to show signs of wear and tear on the economy, and there is speculation that the RBA will have to ease its monetary policy further later in the year. But, with the yield where it is at, Australia has room to do so.