[Summerset]

With the BoE reluctant to increase rates in an appropriate manner, the Aussie with an appretiative interest rate currently @ 6.5% is becoming the favorite vechile for carry trades.

More so should the FED move into an easing cycle coming summer (begin a gradual cuting of rates) to combat a shadow of recession, and boost a summer market boom. The interest diffrential would then become much much more pronounced in the Aussie's favor. The market is currently discounting this as a viable possibility. That's why the current sharp rise in Aussiedollar.

Under such circumstances,it may not prove, of worth to wait for any retractions of magnitude on the Aussie.

And yes, the Aussie is at a 10 yr high, but so is its interest premuim, with diffrentials projected to continue to roll in its favor.

With this regards note that the Sterling too, has not been making higher highs recently like the Euro. Mainly because growth in its interest projections appear at a terminal end - unlike the Euro.