Aussie Dollar Doing Well

The Australian dollar has done well recently due to speculation that the Reserve Bank of Australia would soon raise interest rates.

This increase was also fueled by a higher demand for commodity-linked currencies, thanks to gains in Chinese stocks.

Money markets had forecast a slim chance of a rate rise by December, but the RBA's indication that the bank would raise rates spurred a new forecast of a higher rate rise.

Hans Redeker, of BNP Paribas, said that the market was underestimating the Australian economy.

"We expect the Australian dollar to remain relatively well supported and would look to enter long positions targeting $0.90 against the US dollar in the coming days."

The New Zealand dollar also saw a slight (.8%) increase, while the Euro finally slipped from its two month long rise against the dollar.