Aussie, kiwi slide, as dollar recovers after Fed

Aussie, kiwi slide, as dollar recovers after Fed

19 March 2015, 09:58
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On Thursday the Australian dollar dropped over 1% versus dollar, as the latter regained ground after the news U.S. interest rates will likely remain on hold for a longer period of time. 

The kiwi dollar was also lower against the US peer, after data showed that the New Zealand economy grew in line with expectations in the last quarter.

AUD/USD hit 0.7718 during late Asian trade, the session low; the pair subsequently consolidated at 0.7691, tumbling 1.04%. The pair was likely to find support at 0.7588, Wednesday's low and resistance at 0.7845, Wednesday's high.

NZD/USD hit 0.7448 during late Asian trade, the session low; the pair subsequently consolidated at 0.7431, declining 0.73%. The pair was likely to find support at 0.7272, Wednesday's low and resistance at 0.7554, Wednesday's high.

New Zealand's gross domestic product expanded at a rate of 0.8% in the fourth quarter of 2014, in line with expectations and down from 0.9% in the previous quarter, according to the official data. The figure was revised from a previously estimated growth rate of 1.0%.

In the meantime, the greenback strengthened after a broad selloff on Wednesday when the Fed indicated that U.S. economic growth has moderated and that interest rates will rise at a slower pace than previously forecast.

The Aussie was lower against the New Zealand dollar, with AUD/NZD shedding 0.38% to 1.0342.

Also Thursday, official data showed that New Zealand's gross domestic product expanded at a rate of 0.8% in the fourth quarter of 2014, in line with expectations and down from 0.9% in the previous quarter, whose figure was revised from a previously estimated growth rate of 1.0%.

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