Aussie surges, kiwi stands still with eyes on major banks
On Monday, the Australian dollar traded higher against its major American counterpart, while the New Zealand dollar stood still as market participants prepared for the Fed’s as well as the BOJ’s upcoming monetary policy gathering this week.
The currency pair AUD/USD soared 0.23%, hitting 0.7482, still close to Friday’s two-and-a-half week minimums of 0.7439.
Positive American data published that week backed expectations for a rate surge by the US major bank in the near future.
While most traders expect the Fed to leave its monetary policy intact this week, it could provide hints on the timing of future rate lifts.
The currency pair NZD/USD stood almost intact at 0.6995, not far from Thursday’s one-and-a-half month minimums of 0.6948.
Apart from that, traders were also looking ahead to Friday’s monetary policy statement by the Bank of Japan amid surging expectations for the announcement of extra stimulus measures.