The Australan Dollar's value rose on speculation that China's central bank will buy the currency and also increase purchases of commodities that the nation exports. The currency has experienced its biggest fall in five weeks on a report that China may diversify out of US. Dollars in its $1 trillion of foreign exchange reserves which is the worlds biggest reserve. The Australian Dollar rose on speculation that China will buy Australian gold. Australia is currently the second largest producer of gold. ''The Australian dollar is being supported by higher commodity prices,'' said Sue Trinh, a currency strategist at RBC Capital Markets in Sydney. ''It's not unreasonable to think the Australian dollar would also be on China's shopping list.''
In forex the Australian Dollar valued at 76.95 US. cents this morning in Sydney in comparison to 76.59 US. cents during late Asian trading yesterday. At the moment, the Australian Dollar is falling because the Reserve Bank is unlikely to raise interest rates again, after November 8's interest rate hike to 6.25 percent, which is the highest in about six years.
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