Aussie dives against Kiwi

Posted On: April 03, 2012
The value of the monetary unit of Australia drove toward its lowest price in six months against the New Zealand dollar on Tuesday, according to Bloomberg.

The driver of the Aussie's losses was the Reserve Bank of Australia indicating it is open to easing monetary policy. The Kiwi retained its advances against the U.S. dollar in response to a report indicating expansion last month among non-manufacturing industries in China.

"Overall, the tone was quite dovish," Treasury economist Lee Sue Ann with United Overseas Bank in Singapore told Bloomberg regarding a statement issued by the Reserve Bank of Australia. "Interest-rate expectations are going to fall, and this will continue to weigh on the Aussie dollar."

Glenn Stevens, governor of the Reserve Bank of Australia, issued a statement indicating that policymakers would carefully weigh upcoming data releases before deciding to ease monetary policy.

MarketWatch reports the Reserve Bank of Australia opted during its April policy meeting to leave the key cash rate unchanged at 4.25 percent while indicating a rate cut might occur as soon as May.

Category: Industry News

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