Forex – Aussie, Kiwi Move Higher Against Weaker Greenback

Aussie and kiwi rise vs. greenback, focus turns to Fed – The Australian and New Zealand dollars moved higher against their U.S. counterpart on Wednesday, despite the release of disappointing Australian data as sentiment on the greenback remained significantly fragile.

added 0.11% to 0.8092 after the Australian Bureau of Statistics reported that the consumer price index rose in the fourth quarter, disappointing expectations for a 0.7% gain.

Year-over-year, consumer prices rose in the three months to December, compared to expectations for a 2.0% increase.

A separate report showed that China’s official manufacturing purchasing managers’ index slipped to in January from 51.6 the previous month, compared to expectationd for a downtick to only 51.5.

China is Australia’s biggest export partner.

On a more positive note, China’s non-manufacturing PMI rose to this month from 55.0 in December, beating expectations for an unchanged reading.

advanced 0.80% to trade at 0.7389.

Meanwhile, the greenback moved lower following U.S. President Donald Trump’s late Tuesday.

Amid positive comments on what the U.S. President described as a “New American Moment” characterized by prosperity, rebuilding and cooperation, Donald Trump also underlined the need to end participation in large, multilateral treaties, as well as in unfair trade practices by other nations.

Sentiment on the greenback was also vulnerable ahead of the Federal Reserve’s due later in the day.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.25% at 88.80 by 02:05 a.m. ET (06:05 GMT), remaining within close distance of last week’s three-year lows of 88.25.

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