Aussie, kiwi slip lower ahead of FOMC decision

Aussie, kiwi slip lower ahead of FOMC decision

17 September 2015, 09:03
News
0
503

The New Zealand dollar slipped lower against its U.S. counterpart on Thursday, after data showed that the New Zealand economy grew at a slower pace than expected in the second quarter.

Meanwhile, the Aussie declined after hitting three-week highs ahead of a highly-awaited Fed decision on rates.

NZD/USD hit 0.6334 during late Asian trade, the session low; the pair subsequently consolidated at 0.6349.

Earlier Thursday, Statistics New Zealand said that the country's gross domestic product GDP climbed 0.4% in the second quarter, confounding expectations for a 0.5% increase and after a growth rate of 0.2% in the three months to March.

On a yearly basis, New Zealand's GDP rose by 2.4% in the second quarter, below expectations for a 2.5% gain and down from a growth rate of 2.6% in the first quarter.

The Australian dollar was weaker vs the greenback with AUD/USD hitting 0.7178 during late Asian trade, the session low; the pair subsequently consolidated at 0.7185, falling 0.18%.

Meanwhile, market players were jittery amid uncertainty over if the Fed would increase short term interest rates for the first time in almost a decade on Thursday.

An increase in interest rates would boost the greenback by making it more attractive to yield-seeking investors.

Fed Chair Janet Yellen has said the likelihood of increasing rates is data dependent but has also signaled that she expects to begin raising rates before the end of the year.

On Wednesday showed that U.S. consumer prices edged down by 0.1% last month, in line with forecasts following a 0.1% increase in July, while core consumer prices, which exclude food and energy costs, increased by 0.1%, also in line with the consensus forecast.

Share it with friends: