Forex – Aussie, Kiwi Move Lower in Cautious Trade; Eyes on RBNZ

© Reuters. Aussie and kiwi decline vs. greenback with RBNZ decision in focus – The Australian and New Zealand dollars moved lower against their U.S. counterpart on Wednesday, as investors remained cautious following a nearly three-day rout in global equities and eyed the Reserve Bank of New Zealand’s upcoming policy statement.

slid 0.39% to 0.7874, hovering close to the previous session’s three-and-a-half week trough of 0.7836.

Market sentiment waned after on Friday following the release of strong U.S. employment data, which sparked concerns over rising inflation, sending bond yields sharply higher.

The index was particularly hit on Monday, when it recorded its worst daily point drop in history.

However, U.S. equities rebounded on Tuesday, leading to a downward turn in the greenback, which had benefited from Wall Street’s sharp decline.

dropped 0.41% to trade at 0.7313, not far from Tuesday’s two-week low of 0.7261.

Market participants were looking ahead to the RBNZ’s monthly policy decision, due early Thursday. The central bank was expected to leave interest rates on hold at .

Investors will especially be focusing on the RBNZ’s for potential indications on the central bank’s future policy moves.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.10% at 89.44 by 02:10 a.m. ET (06:10 GMT), off the two-week peak of 89.92 reached on Tuesday.

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