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.
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Australia’s Treasurer Peter Costello says he would like the Reserve Bank governor Ian Macfarlane to continue working with the Government once his time in the job ends.

Mr Macfarlane’s term will come to an end end in October this year.

The Treasurer would not be drawn today on just when a replacement will be named but paid tribute to the role the current governor has played.
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Unemployment in Australia has fallen to its lowest level in 30 years, sparking market fears of a further hike in interest rates to curb inflationary pressure and a massive drop in stocks.
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National Australia Bank’s management had the wool pulled over their eyes by two former traders involved in the $326 million unauthorised trading scandal that rocked the bank in 2004, a court has been told.

The Victorian County Court heard that Vince Ficarra told his boss on the foreign exchange options desk, Luke Duffy, that he was not impartial to telling lies as the traders continued to hide losses by entering one-sided false trades.
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