The Kiwi's three-straight days of gains against the Japanese yen halted as the Aussie fell to most of its counterpart currencies one day before the release of a report that will note Australia saw home
loans fall. Losses to the Aussie also were attributable to the less-than-stellar performance of select products on the commodity complex.
"We have a mild bias to the weakness in the Australian dollar on the back of softer commodity prices and our view that there is still potential for a rate cut in Australia because we are growing below trend," chief economist Hans Kunnen with St. George Bank told Bloomberg.
After the Federal Open Market Committee convened on January 25, U.S. central bank chairman Benjamin Bernanke said one key topic of discussion was the likelihood of asset purchases to prompt development and growth in the U.S. economy, the globe's largest.
The host of the world's second-biggest economy, China, announced this past weekend it is coping with a trade deficit, which also harmed the Aussie and Kiwi, according to Reuters.
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