The Australian Dollar has continued its good run of form against most major currencies, following a series of positive comments from a range of Central Banks and influential speakers that identify the times of low interest rates may soon be over. Investors are currently moving funds out of the heavily populated US Dollar as Janet Yellen, Chair lady of the FED, failed to comment on the course of action the FED would take regarding monetary policy.

Another possible reason for AUD strength of late could be the fact that investors have realised that United States is not the only country with high rates of return. Australian’s interest rate is currently sat at 1.5%.

Next week could see even more strength for the Australian Dollar. In the early hours of Tuesday morning, the latest interest rate decision and subsequent monetary policy statement will be announced. No change to policy is expected, however following events this week I wouldn’t be surprised to see a shift in tone.

If the Reserve Bank of Australia do present a more hawkish tone then I wouldn’t be surprised to see the AUD benefit further.

Not only will the interest rate decision be key next week, but investors will also be looking at export numbers following China’s better than expected Manufacturing data. As China’s manufacturing is heavily linked to the export of Iron Ore from Australia, these figures will be keenly watched to see if the Australian Dollar will be a wise investment for the future. If these figures come out better than expected I wouldn’t be surprised to see further AUD strength.