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Aussie and kiwi go down amid profit taking

On Wednesday, the Australian and New Zealand dollars slumped against the US dollar because lower crude prices drastically reduced demand for the commodity currencies as traders locked in revenues from the Aussie as well as kiwi’s recent revenues.    

The currency pair AUD/USD sagged 0.50%, hitting 0.7586, off the previous session’s two-month peak of 0.7657.

Market sentiment greatly improved during recent sessions as market participants hope for a rate decrease from the Bank of England at the conclusion of its policy gathering on Thursday, while Shinzo Abe’s victory in Sunday’s parliamentary elections powered speculation regarding approaching stimulus measures by the BOJ.    

The currency pair NZD/USD rebounded 0.78%, trading at 0.7243, driving away from Tuesday’s 14-month high of 0.7325.

However, the commodity currencies weakened as crude prices headed south after the American Petroleum Institute told on Tuesday that American crude inventories surged unexpectedly by approximately 2.2 million barrels the previous week.

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