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n 2 0 1 7 , an article on bloomberg.com had the following headline: The Australian Dollar's Outlook Darkens. The article stated that: The march

n2017, an article on bloomberg.com had the following headline: "The Australian Dollar's Outlook Darkens." The article stated that: "The march of the Fed toward higher U.S. interest rates has also been a factor sapping optimism toward the Aussie[dollar]."
Source: Michael G. Wilson, "The Australian Dollar's Outlook Darkens," bloomberg.com, May18,2017.
Briefly explain the article's reasoning.
A.
When U.S. interest rates rise, the value of the Australian dollar increases because the U.S. trade deficit improves.
B.
When U.S. interest rates rise, the value of the Australian dollar decreases because Australian net exports decrease.
C.
When U.S. interest rates rise, the value of the Australian dollar decreases because investors demand fewer Australian dollars.
D.
Higher U.S. interest rates increase the value of the Australian dollar, causing Australian consumers to have more purchasing power.

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