Aussie drops to 4-month minimums, Kiwi stands still
On Monday, the Australian dollar sagged to four-month minimums against its American counterpart, while the New Zealand dollar stood still because financial markets digested comments by Fed Chair Janet Yellen made on Friday.
The currency pair AUD/USD edged down 0.21%, hitting 0.7548, demonstrating the lowest outcome since August 2.
At the Jackson Hole symposium on Friday, Janet Yellen told that the case for American interest rate hikes has already strengthened for recent months thanks to improvements in the labor market and hopes for solid economic growth.
However, she didn’t specify when the Fed would act, telling that higher interest rates will solely depend on incoming economic data.
Fed Vice Chair Stanley Fischer, speaking shortly afterwards told that Yellen’s speech happened to be consistent enough with expectations for two more rate lifts this year, thus opening the door to a September rate lift.
The currency pair NZD/USD traded flat at 0.7240.