The Aussie slipped against 14 of its 16 top rivals while the Kiwi climbed from its lowest value in six weeks. While technical indicators suggest the New Zealand dollar might be on its way up, the deputy governor of the Reserve Bank of Australia said the financial institute he heads is prepared to address growth harmed by currency strength.
"It is possible for exchange rates to overshoot," according to the text of a speech Philip Lowe was prepared to deliver in Sydney on Wednesday. "Monetary policy would have the flexibility to respond provided the inflation outlook remained benign."
The fourth quarter of 2011 in Australia saw gross domestic product gain 0.4 percent while a Bloomberg survey showed those gains were forecast to be 0.8 percent. The nation is set to release economic data on Thursday that will indicate unemployment grew to 5.2 percent in February after touching 5.1 percent in January.
GDP from the fourth quarter of last year did not rise to expectations, which pressured the Australian dollar, according to Dow Jones Newswires.
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