The Australian dollar was robbed of early gains on Thursday after news of a new tax to pay for flood damage was seen further lessening the need for higher interest rates in coming months. The New Zealand dollar fared better after the Reserve Bank of New Zealand said rates there were still likely to rise over the next couple of years, though it would wait for concrete signs of recovery before moving.
The Aussie dollar slipped to $0.9960 from an early high of $1.0002, to stand little changed on the day. The kiwi held up at $0.7722, after rising from around $0.7650, and gained on the Aussie to NZ$1.2890. Earlier both currencies had posted gains after the US Federal Reserve reiterated its commitment to quantitative stimulus, boosting risk trades in equities and commodities.
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