Aussie Follows Footsteps of Kiwi

The Australian dollar followed the footsteps of its New Zealand counterpart, failing to rally against the US dollar yesterday and trimming today’s losses. The currency also rallied versus the Japanese yen.

The Aussie performed strikingly similar to the kiwi. Unlike New Zealand, Australia provided good macroeconomic indicators both yesterday (with rising capital expenditures) and today (with growing private sector credit). Yet this did not affect the performance of the Aussie, suggesting that both Australian and the New Zealand dollar are affected mostly by outside factors, not domestic ones.

AUD/USD was down from 0.8543 to 0.8521 as of 16:52 GMT today, touching the daily minimum of 0.8485. AUD/JPY advanced from 100.55 to 101.16.

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