Aussie goes up, kiwi sinks with focus on Fed gathering
On Monday, the Australian dollar traded higher against its American counterpart, while the New Zealand dollar sank because markets were quite jittery ahead of the Fed’s policy gathering this week amid uncertainty as for the timing of future American rate lifts.
The currency pair AUD/USD closed +0.18% at 0.7388.
Upbeat sentiment over the strength of the American economy was supported after on Thursday the US Department of Labor informed that the total number of people filing for initial jobless benefits in the week ending June 4 dropped suddenly to 264,000.
The University of Michigan reported on Friday that its consumer sentiment index sagged to 94.3 in June, compared to the previous month’s reading of 94.7.
However, financial markets seem to have ruined hopes for the timing of the next rate lift by the Fed after a gloomy American employment report for May, that demonstrated the slowest tempo of jobs growth since September 2010.
Besides this, a speech delivered by Janet Yellen, Fed Chair last Monday, pointed out that interest rates won’t soar until uncertainty over the economic outlook is tackled.
The currency pair NZD/USD lost 0.16%, trading at 0.7043.