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.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.