The Australian dollar edged down against the world's reserve currency on Monday as the governor of the Reserve Bank of Australia prepares to deliver parliamentary testimony later this week, according to Bloomberg.
The monetary unit of the South Pacific nation also endured pressure as the policy-making arm of the U.S. Federal Reserve prepares to meet for two days of meetings this week as the future of economic stimulus hangs in the balance. Speculation is at a fever pitch as to whether the Fed body will taper monetary stimulus measures when it meets on Tuesday and Wednesday.
"Short positioning in the Aussie is getting a bit overstretched," Foreign-Exchange Analyst Divya Devesh with Standard Chartered Plc. in Singapore told the news source on Monday. "Towards the end of the year, there might be … some position unwinding."
The Australian dollar moderately dropped 0.1 percent after last week notching its eighth straight week of losses against the U.S. dollar.
The central bank of the South Pacific nation has keep borrowing costs low as part of an effort to preserve incoming stimulus funding, The Australian reports.
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