Aussie drops, Kiwi ascends in cautious trade

On Tuesday, the Australian dollar dropped against the greenback, while the New Zealand dollar managed to grow, as traders waited for the publication of American economic growth data later in the day amid overall optimism over the strength of the US economy.

The currency pair AUD/USD lost 0.08%, trading at 0.7475.

Investors were eyeing the issue of preliminary third-quarter economic growth news from America for further clues on the strength of the American economy.

The US dollar has remained broadly backed in recent weeks amid hopes that increased fiscal spending as well as tax cuts under the Trump administration will power economic growth, to say nothing of inflation.

The greenback has also been driven by the view that a rate lift by the Fed in December is a near certainty.

The currency pair NZD/USD earned 0.17%, showing 0.7085.

Market participants were also looking ahead to Wednesday’s OPEC gathering, amid ascending uncertainty over the probability for a production cut deal.

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