Australian Dollar Heads Higher on Risk Appetite

Forex traders look for higher yields

The Australian dollar is headed higher today in currency trading on the FX market today. Forex traders like down under currencies when risk appetite rises, since they can take advantage of the high yields.

The Aussie is also being helped in forex trading by the fact that commodities are doing better. The Australian dollar is a commodity currency that relies heavily on the price of gold for support. Gold prices are recovering, moving above 0 an ounce today, and that is providing some support for the Australian dollar in currency trading.

With U.S. the Dow 100 points higher just as the stock market opens today, it is clear that sentiment is on the side of risk. Earnings reports are upbeat, and that is creating optimism in the financial markets. There is hope that the economy will soon be out of recession and on the way to recovery.