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Forex - Aussie, kiwi move higher as sentiment improves

Published 06/28/2016, 02:20 AM
Aussie and kiwi regain ground vs. greenback as Brexit turmoil begins to ease
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Investing.com - The Australian and New Zealand dollars moved higher against their U.S. counterpart on Tuesday, as investors began to digest Britain’s decision to leave the European Union, lending support to riskier assets.

AUD/USD advanced 0.93% to 0.7396.

Market sentiment was hit after the U.K. voted by nearly 52% to 48% last Thursday to break away from the world's biggest trading bloc.

Investors fear that the decision could hit investment in the U.K. economy, threaten London's role as a global financial capital and trigger months of political uncertainty after British Prime Minster David Cameron resigned on Friday.

The Brexit vote also weighed on oil prices, which in return dampened demand for the commodity-currencies, but crude prices moved back higher on Tuesday.

NZD/USD rallied 1.01% to trade at 0.7068.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.33% at 96.22, off the previous session’s three-month highs of 96.86.

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