The dollar of Australia and New Zealand climbed in value on Tuesday, putting the kibosh on three-straight days of losses, Bloomberg reports.
Significant anticipation is tracking the policy making arm of Chairman Ben Bernanke's U.S. Federal Reserve, which is slated to meet Tuesday, according to Dow Jones Newswires. Investors are keeping an eye out for clues about a third round of asset purchases, which is more colloquially known as "Quantitative Easing Three" or QE3.
"Any hints that Bernanke is backing away from QE3 would likely be interpreted as USD-positive," strategist Emma Lawson with NAB FX told Dow Jones Newswires. "However, bear in mind that it was only the last meeting that the Fed pushed back its [interest] rate hike guidance to 'late 2014.' So it may be too early to expect the Fed to give any ground on this."
Bloomberg reports the Kiwi and Aussie performed strongly on Tuesday as both followed the upward trend of Asian shares.
Australia saw business confidence fall to its lowest level since October of last year, which reduced the Aussie's allure, Bloomberg reports. A report signaling house and food prices in New Zealand increased in February boosted the Kiwi against all 16 of its top rival currencies.
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