The dollars of Australia and New Zealand were pinched for a third-straight trading session against the world's reserve currency on Wednesday in anticipation of the U.S. Federal Reserve publishing minutes from the late July policy meeting, Bloomberg reports.
The minutes are believed to hold signs about what the central bank might do regarding monetary stimulus measures. Anticipation is high that the body will announce tapering in time for next month.
"Although the intention to cool the housing market may decrease the need to increase interest rates anytime soon, it is highly questionable if such measures will be sufficient in decreasing the risk of a major housing bubble," states a Wednesday research note authored by currency strategist Manuel Oliveri with UBS AG in Zurich, according to Bloomberg. "NZD upside risk remains intact."
The Australian dollar has emerged as this year's worst-performing monetary unit of the Group of 10 nations and the New Zealand dollar dropped to its lowest value in one week in the aftermath of the Bank of New Zealand indicating house-price inflation rates might be halved by new lending standards.
Radioactive leakage at Japan's Fukushima nuclear plant prompted investors and traders to sell the Aussie, according to The Wall Street Journal reports.
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