The Australian dollar was nearing its lowest value in five years against the monetary unit of New Zealand on Tuesday as policy makers with the central bank of Australia prepared to meet, according to Bloomberg.
The Aussie was moderately changed against the world's reserve currency for a third-straight day. Reserve Bank of Australia (RBA) policy makers are likely to discuss slimming down the exchange rate amid strengthening calls for that measure.
"With a strong ISM (Institute for Supply Management) Manufacturing Survey overnight and expectations of solid non-farm payrolls on Friday, the market is coming around to the view that the Fed could begin tapering its bond buying program as early as the 17-18 December meeting," chief economist Rob Henderson with the National Australian Bank told The Australian on Tuesday. "If the Fed disappoints, then we could see a fall in the U.S. dollar and a higher Aussie dollar, a development the RBA would not see favorably."
The Australian dollar fell to its lowest value since October 2008 against the New Zealand dollar during the Tuesday trade session.
The Aussie moderately climbed earlier during the Tuesday trade session after the Australian Bureau of Statistics released stronger retail spending data in October, The Australian reports.
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