DBS Bank: The Australian dollar remains the preferred currency for “carry trade”

Golden Ten Data reported on April 21 that according to Philip Wee, an analyst at DBS Bank, the Australian dollar remains the most valuable investment choice for carry trades. The senior foreign exchange strategist stated: "Current futures market pricing shows there is a 74% probability that the Reserve Bank of Australia will raise interest rates for the third consecutive time at its meeting on May 4-5." Wee said that the rate hike by the Reserve Bank of Australia at its March meeting "established the Australian dollar as the highest-yielding currency, with its policy stance providing a 'higher-for-longer' bottom support for the AUD." Wee added that if the Australian dollar can repeat last week's rebound against the US dollar, this currency pair might break through last week's resistance level at 0.7200.