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11/17/2005
The interest rate differential between the US Dollar denominated Savings deposits and the deposits in Australian Dollars is expected to shrink to 0.85 advantage for the Australian Dollar. The smallest differential is expected at April 2006.
These expectations are driving the Australian Dollar/US Dollar exchange rate to a degree.
Higher interest rates were always a big advantage for the Australian Dollar. Without them the Australian Dollar doesn't have a big advantage in international money flows.
This is not a trade recommendation and no one should treat it as such.
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Recommended Links on this topic:
Projected Future Eurodollar, Federal Fund, Libor, EuroYen, EuroSwiss, Euribor, Australian, |
