Aussie, kiwi gain ground, recover from the recent losses in late trade
Investing.com — The Australian and the new Zealand Dollar moved higher against its us counterpart on Wednesday, rebounding from recent losses, as demand for the greenback weakened amid speculation that the next Federal Reserve could be the head, the less radical than expected.
AUD/USD gained 0.38% to 0.7865, from the previous session, the two-and-a-half-month low of 0.7786.
Fed Governor Jerome Powell and Ex-Governor Kevin Warsh were to replace both interviewed at the White house last week, the current Fed chair, Janet Yellen, the next February.
While the two men seen as a serious candidate, Powell is considered to be rather quiet as Warsh, who criticized the Fed’s bond-buying program in the past.
The dollar strengthened earlier in the week on speculation that the Warsh could Yellen to replace the top candidate.
The greenback was also supported recently by hopes for the US tax-reform, according to the trump administration outlined plans for an in-depth revision of the U.S. tax code in the last week.
NZD/USD rose 0.28% to trade 0.7180, pulling away from Tuesday’s one-month trough of 0.7147.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.20% 93.22 02:15 PM ET (06:15 GMT), which consists of a one-and-a-half-month high of 93.78 reached on Tuesday.