The Australian and the New Zealand dollars eased on Wednesday after strong offshore gains, suggesting the risk rally could be pausing as investors await the outcome of efforts to resolve Europe's debt crisis. The Aussie slipped to $0.9869, from $0.9944 in New York, having been as high as $0.9985 overnight.
The Australian dollar has risen 2.4 percent since Monday's 10-month trough of $0.9622 after shedding 5 percent last week in a broad sell-off of risk currencies on worries about Europe's debt and a global slowdown. The New Zealand dollar's rally also ran out of puff and the kiwi retreated from its highs to around $0.7840, from $0.7886 in late New York trade.
It had gained more than 1 percent in the overnight session, touching a five-day high of $0.7958. The currency was unmoved by New Zealand Finance Minister Bill English saying he is more hopeful than confident that a solution to the euro zone debt crisis will be found, calling the mood at last week's IMF/World bank meetings ugly.
Comments
Comments are closed for this article.