Australian Dollar

The Australian Dollar is the strongest of the eight major currencies right now, with a strength score of +51. Its biggest support is interest rates: at around 4.3%, it pays more than most other major economies — and money tends to move toward currencies that pay more. Big global investors are betting heavily that it will rise — near their most bullish in three years. That's a strong vote of confidence, though such crowded bets can reverse quickly if the mood shifts. It tends to do well when markets feel confident, and the mood is upbeat right now — a tailwind. It also earns a lot from exporting metals like iron ore, and firm prices for those are giving it an extra lift. A healthy economy adds further support. Over the past few weeks it has been steadily getting stronger. One caution: after that run it now looks stretched — expensive versus its own recent range — which raises the risk of a pullback.