Aussie Is Now King Of Dollars
The reason for today's rally is of the interest rate increase by the Reserve bank of Australia (RBA). And the reason why the Australian dollar is going better than the others is that the RBA is gradually tightening monetary policy, while the Bank of Canada is more passive and the Fed is planning "quantitative easing".
How long the Australian dollar will remain strong depends in part of course on just how much the RBA will continue to tighten, and how large the Fed's "quantitative easing" will be. It also depends on how much the prices of Australia's mining exports rise-or decline.