澳元定期問題

US (Feds) continue to cut interest rate (market is thinking that Feds will cut further 1.25% in 2008) while Australian central bank (Reserves Bank of Australia) will tighten interest rate by 25bps in February, 2008, the widening interest rate differential will support AUD to the upside. It is good time to buy AUD and place it as fixed time deposit to enjoy higher interest rate. But we must assume US economy will only slow down, not suffer in recession.