Aussie and Kiwi edge up, though profits seen capped
On Wednesday, both the New Zealand and Australian dollars edged up against their key US counterpart. However, revenues were expected to remain limited because of dropping oil.
The currency pair AUS/USD surged 0.11%, trading at 0.7371,0 close enough to the previous session’s two-month minimum of 0.7300.
The commodity currencies remained under pressure because on Wednesday crude prices moved back lower, reacting to news that Canadian oil sand production is set to surge following forced closures because of wildfires.
Apart from that, on Tuesday, the American Petroleum Institute informed that American crude inventories surged by 3.45 million barrels to a record 543.1 million barrels close by May 6.
NZD/USD managed to acquire up to 0.64%, trading at 0.6806.
By the way, in its Financial Stability Report, the Reserve Bank of New Zealand told that even considering steady New Zealand’s economic growth, the outlook for the global economy has worsened.