Aussie and kiwi edge lower amid persisting Brexit fears
On Wednesday, the Australian and New Zealand dollars traded lower against their American rival, following renewed fears over the probable negative consequences of the Brexit vote. Those concerns weighed on demand for risky assets.
The currency pair AUD/USD slumped 0.38%, reaching 0.7434, the lowest value since June 30.
Market participants were still cautious because the UK’s shocking decision to break up with the European Union drove uncertainty over the tough consequences of this vote on the country’s economy as well as the global economy in general.
On Tuesday, the Bank of England warned of challenging risks to financial stability following the UK’s recent vote and also eased regulatory requirements on the banking sector.
Mark Carney, BoE Governor told that the move represented a radical change, which would help the British economy to cope with the negative Brexit consequences.
NZD/USD tumbled 0.82%, trading at 0.7095, the lowest value since June 30.