Aussie goes up, Kiwi drops vs. greenback
On Tuesday, The Australian dollar grew against its American counterpart, while the New Zealand dollar descended as demand for the US dollar remained broadly backed by ongoing optimism over the outlook for the American economy.
The currency pair AUD/USD lost 0.08%, trading at 0.7375.
The US currency has remained backed amid expectations that President-elect Donald Trump’s plans to ramp up fiscal spending and also cut taxes will stimulate economic growth and inflation.
Faster growth would bolster inflation, which in turn would enable the Fed to tighten its monetary policy a faster rate than had previously been supposed.
The greenback has also been driven by bets that the American major bank will almost certainly ascend interest rates next month.
On Thursday, Fed Chair Janet Yellen reiterated that a rate lift could become appropriate relatively soon.
The currency pair NZD/USD went down 0.10%, trading at 0.7058.