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Forex - Aussie, kiwi move higher but gains seen capped

Published 05/11/2016, 02:22 AM
Aussie and kiwi gain some ground but lower oil prices weigh
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Investing.com - The Australian and New Zealand dollars moved higher against their U.S. counterpart on Wednesday, but gains were expected to remain limited by lower oil prices.

AUD/USD edged up 0.11% to 0.7371, still close to the previous session’s two-month low of 0.7300.

The commodity currencies remained under pressure as oil prices moved back lower on Wednesday, following news Canadian oil sand production is set to rise following forced closures due to wildfires.

In addition, the American Petroleum Institute said on Tuesday that U.S. crude inventories rose by 3.45 million barrels to a record 543.1 million barrels in the week ending May 6.

NZD/USD gained 0.64% to trade at 0.6806.

Meanwhile, in its Financial Stability Report, the Reserve Bank of New Zealand said that "while New Zealand’s economic growth remains solid, the outlook for the global economy has deteriorated."

The RBNZ also said it was "closely monitoring developments to assess whether further financial policy measures would be appropriate."

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.21% at 94.02.

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