Aussie and Kiwi fluctuate a little vs. broadly stronger greenback
On Monday, the Australian and New Zealand dollars were little changed and kept to multi-month minimums against their American counterpart, as the US dollar remained broadly backed by optimism over the American economy as well as expectations for an upcoming American rate lift.
The currency pair AUD/USD was steady at 0.7337, off a five-month minimum of 0.7311 reached overnight.
The US dollar has remained backed amid hopes that President-elect Donald Trump’s plans to ramp up fiscal spending as well as cut taxes will drive economic growth as well as inflation.
Faster growth would spur inflation, which in turn would help the Fed to tighten monetary policy a faster rate than had been expected previously.
The greenback has also been powered by bets that the US major bank will almost certainly increase interest rates next month.
On Thursday, Fed Chair Janet Yellen reiterated that a rate lift could well become appropriate soon.
The currency pair NZD/USD was almost intact at 0.7010, having reached a four-month low of 0.6985 earlier in the day.