Futures Market News
South Pacific dollars slide against U.S. dollar
Mar 15, 2012 10:41 AM
Thursday saw the Australian and New Zealand dollars drop to their lowest values in seven weeks against the world's reserve currency, Bloomberg reports.
The South Pacific currencies dropped as a consequence of the strengthening U.S. dollar, according to Dow Jones Newswires. Uplifting economic data about the globe's largest economy, such as the strengthening labor market, reduces the possibility of the U.S. Federal Reserve employing a third round of quantitative easing as well as cuts down on demand for the Kiwi and Aussie.
"The stronger New Zealand economic data we're starting to see does mean that Aussie-kiwi will continue to shift lower," currency strategist Mike Jones with Bank of New Zealand in Wellington told Bloomberg. "Investors will look to play the stronger New Zealand economic view through the Aussie-kiwi cross, rather than against the U.S. dollar."
China, top trade partner of Australia and New Zealand's second-largest export market, noted it intends to preserve restrictions on the real-estate market. That also reduced demand for the South Pacific dollars.
With a focus on news and developments coming from the U.S. in lieu of a slowdown of news from the euro zone, the downward tick of the Aussie and Kiwi is projected to continue, Dow Jones Newswires reports.
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