Australian Dollar Soars

The U.S. dollar (USD) gained some ground against the other major currencies on Monday after falling last week due to poor economic data. The Australian dollar (AUD) however has risen to a three-month high due to its increasing yield attractiveness and market expectations that the Reserve Bank of Australia is set to raise rates as early as March due to rising inflation. Interest rates are currently already at an 11-year high and with no signs of the economy cooling are expected to continue to climb.

Analysts expect the U.S. dollar to continue to be under pressure as U.S. data releases continue to show no sign of the economy improving. Analysts expect little Forex Trading of the dollar this week until the U.S. consumer inflation report and minutes are released later in the week.