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Australian Dollar (AUD) and New Zealand Dollar (NZD) Exchange Rates Decline on Fed Speculation

Australia and New Zealand Dollars
The Australian and New Zealand Dollars have both posted declines against the US Dollar as investors await the outcome of the Federal Reserve’s latest two day policy meeting, which is expected to give some indication as to whether the US Central Bank will begin to taper its asset purchasing programme.

Adding to the Australian Dollar’s decline were comments made by the Reserve Bank of Australia. The Bank indicated that the currency could weaken further and as policy makers revealed that they see room to ease borrowing costs further.

“The interpretation by the markets is the RBA is giving the green light for the Aussie to go lower,” said a senior economist at National Australia Bank Ltd. “Positioning in the Aussie has been excessively short, so it’s probably got some support on the downside.” A short position is a bet an asset’s price will decline.

The Australian Dollar has declined by 9.8% against its US counterpart

Over the past three months the Australian Dollar has declined by 9.8% against its US counterpart, making it the worst performing developed currency in the world. Hotly on its heels is the New Zealand Dollar, which has tumbled by 4%.

Economists are betting that the ‘Aussie’ will decline further.

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The New Zealand Dollar, meanwhile, fell as investors speculate that the Federal Reserve will choose to start winding back its $85 billion a month asset purchasing programme.

The ‘Kiwi’ lost ground overnight

The ‘Kiwi’ lost ground overnight due to a stronger U.S. Dollar but really “everything is on hold waiting for Bernanke,” said Stuart Ive, OM Financials Wellington-based senior client advisor. Mr. Ive noted that data, including employment figures, out of the U.S. has been improving.

“This gives Fed Chairman Ben Bernanke scope to say ‘yes we are potentially going to withdraw some of the stimulus in the near future…but he might also emphasize that any further moves will be data dependent,” Mr. Ive said.

New Zealand traders should keep an eye on Thursday’s GDP data for New Zealand.

Current Exchange Australian Dollar (AUD) Rates

The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9474

The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7079

The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6043

The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1887

The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0555

The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4126

The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6546

The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8412

Current New Zealand Dollar (NZD) Exchange Rates

The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7969

The New Zealand Dollar /Euro Exchange Rate is currently in the region of: 0.5955

The New Zealand Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5084

The New Zealand Dollar /Australian Dollar Exchange Rate is currently in the region of: 0.8412

The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2402

The Pound Sterling/New Zealand Dollar Exchange Rate is currently in the region of: 1.9669

The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6792

The Australian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.1887

The Canadian Dollar/New Zealand Dollar Exchange Rate is currently in the region of: 1.2302

(Correct as of 09:35 am GMT)

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