Down Under Currencies Rally on Bailout Plan

by Trader Rich

Risk appetite improves as bailout plan moves closer to passageDown under currencies are rallying today in FX trading as a proposed bailout plan moves a little bit closer to acceptance by U.S. Congress.

The bailout plan means that the U.S. financial markets will be shored up against some of the troubles facing them, and this is creating a sense of confidence. Even thought the bailout plan may not help the U.S. dollar much in currency trading, it could help others.

The down under currencies — the New Zealand dollar and the Australian dollar — are high yielding and they do very well when risk appetite is strong enough to make them beneficiaries of the carry trade.