Australian dollar to spike as investors pile into ‘carry trade’

The country’s $4.5 trillion superannuation sector is bracing for a further rally in the Australian dollar as yield-hungry investors pile into the local bond market lured by the so-called “carry trade”.

Expectations of higher interest rates in Australia have lit a fire under the bond market, pushing yields well above their US counterparts, from three-month notes to 30-year Treasuries.

Source: https://www.afr.com/markets/debt-markets/australian-dollar-to-spike-as-investors-pile-into-carry-trade-20260218-p5o3a2