Aussie and kiwi head south vs. greenback after Fed minutes
On Thursday, the Australian dollar dipped to two-month lows against its American counterpart, while the New Zealand dollar managed to remain steady at its two-week dip as new expectations for June rate increase by the Fed sent the evergreen buck upward.
The currency pair AUD/USD tumbled 0.26%, trading at 0.7210, the lowest minimum since March 2.
The US dollar gained support after the Fed’s minutes for recent April meeting, according to which, the vast majority of Fed board members are ready to increase interest rates already in June.
The minutes arose a day after three major bank officials also hinted at the possibility of approaching rate hikes.
On Tuesday, Robert Kaplan, Dallas Fed President told he would push for a fresh interest-rate hike at the bank’s upcoming policy gathering.
Additionally, Dennis Lockhart, Atlanta Fed President, told he still assumes there would several rate surges before the end of 2016.
Finally, John Williams, San Francisco Fed President told almost the same, pointing out these hikes are quite reasonable.