The Australian dollar on Wednesday retained losses against the world's reserve currency as the U.S. Federal Reserve prepares to release minutes from last month's policy meeting, according to Bloomberg.
The Fed is likely to continue slashing monetary stimulus policy, as its policy-making arm decided last month. The minutes are likely to indicate the body's near-term plan. The monetary unit of the South Pacific nation endured losses after economic data indicated the pace of construction slowed in December.
"Elevated short positioning should limit AUD downside from the current levels," states a Wednesday client note authored by Foreign-Exchange Strategist Manuel Oliveri with Credit Agricole SA, according to Bloomberg. "The risk for position squaring-related currency upside may be rising again."
The Australian dollar was hovering after enduring losses of 0.5 percent against the greenback on Tuesday. The Aussie dropped about 0.1 percent against the New Zealand dollar during the Wednesday trade session.
The Aussie plunged 14 percent against the greenback last year, according to Reuters. Those losses are linked with efforts by the Reserve Bank of Australia to prompt economic development and growth.
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