Aussie stands still, Kiwi drops vs. stronger greenback
On Monday, the Australian dollar stood still against its American counterpart, while the New Zealand dollar headed south, as demand for the US dollar remained supported following Donald Trump’s election the previous week.
The currency pair AUD/USD was almost intact, trading at 0.7549, which is close to Friday’s one-month minimum of 0.7519.
The greenback was bolstered by hopes that increased fiscal spending along with tax cuts under a Trump administration will drive economic growth and inflation.
Expectations for higher American interest rates also remained intact amid optimism that a pick-up in growth will enable the Fed to tighten borrowing costs.
The currency pair NZD/USD dipped 0.37%, being worth 0.7089, demonstrating the lowest outcome since October 17.
Meanwhile, market sentiment moderately weakened as Monday’s data showed that China’s industrial production surged by an annualized rate of 6.1% in October, thus ruining expectations for a 6.2% revenue.