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Forex - Aussie, kiwi climb against broadly weaker greenback

Published 06/20/2016, 02:18 AM
Aussie and kiwi move higher, eyes on Yellen testimony
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Investing.com - The Australian and New Zealand climbed against their U.S. counterpart on Monday, as the greenback remained under pressure after the Federal Reserve’s decision to leave interest rates unchanged and as rallying oil prices boosted commodity currencies.

AUD/USD advanced 0.68% to 0.7444, the highest since June 9.

The greenback weakened broadly after the Fed after left interest rates on hold last week and lowered forecast for how much they expect to hike interest rates in the next few years.

Investors were now eyeing testimony on monetary policy by Fed Chair Janet Yellen, due on Tuesday and Wednesday.

NZD/USD jumped 1.07% to trade at 0.7115, the highest since June 10.

Meanwhile, oil prices continued to move higher on Monday as concerns over a potential British exit from the European Union, or Brexit, eased.

Two opinion polls published on Saturday showed that support for the 'Remain' campaign had regained its lead over a vote to leave, while a third showed momentum shifting in favor of a vote to remain in the 28 member bloc.

Campaigning for the June 23 referendum resumed on Sunday after a three-day break prompted by the killing of pro-EU British lawmaker, Jo Cox.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.62% at 93.72, the lowest level since June 9.

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