The Aussie has fallen back slightly from recent highs, buoyed by better appetite for higher-yielding currencies after the U.S. government announced a rescue plan that could stabilise the battered financial system. The Aussie jumped against the Yen as investors returned to carry trading, where funds are borrowed in low yielding currencies such as the Yen and invested in higher yielding currencies such as the Australian dollar.

The Aussie has also taken strength from a recovery in commodities prices with Oil back up at over $104 per barrel and Gold around $868 per ounce. The AUD had recently been taking a battering with the chaos in credit markets causing a rapid unwinding of carry trades and a dimmed outlook for global growth and commodity prices forcing the GBP/AUD exchange rates to their best level for some time. To ensure that the resurgence of risk appetite doesn’t damage your exchange rate, speak with your account manager about buying forward, a particularly attractive option when purchasing Australian Dollars.