Posted On: August 15, 2012
South Pacific monetary units remained at lower values against the world's reserve currency on Wednesday, according to
Conjecture indicated data from the U.S. will pull down the case for the U.S. central bank to intervene and widen monetary easing programs such as a third round of quantitative easing, which water down the value of the U.S. dollar. The Australian dollar notched its lowest value in one week against the U.S. dollar.
"Market participants are reducing bets that the Fed will do QE3," analyst Junichi Ishikawa with IG Markets Securities in Tokyo told the news source, more colloquially referring to the third round of quantitative easing. "Good U.S. data are pushing U.S. yields higher and supporting the dollar. That creates some downward pressure for the Aussie and kiwi."
A Bank of America technical analysis indicated the New Zealand dollar is set to continue dropping below its 60-day low against the U.S. dollar.
The Wall Street Journal reports
the Aussie dropped against the U.S. dollar following strong retail sales data released by the U.S. for the month of July.
Category: Industry News
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