The Aussie and the kiwi gained ground against the greenback at the end of the trade
Investing.com — The australian and New Zealand dollars climbed against their U.S. counterpart on Tuesday, as market participants were looking ahead to the Federal Reserve’s policy meeting due to begin later in the day.
AUD/USD rose 0.24% at 0.7977.
The Fed is widely expected to leave interest rates unchanged this week. However, the U.S. central bank could provide guidance on when it plans to start unwinding the balance sheet, as well as on future interest rate decisions.
Investors were also eyeing U.S. data on building permits and housing starts later on Tuesday for further indications on the state of health of the housing market.
Earlier in the day, the minutes of the Reserve Bank of Australia’s September meeting showed that policymakers remained in favour of low interest rates, saying they have allowed the economy to continue to strengthen.
The central bank has also warned against the current strength of the Australian dollar, saying its “appreciation over the last few months, thanks, in part, by a large depreciation of the U.S. dollar has been weighing on domestic growth”, and that a further appreciation could lead to a slowdown of the recovery in growth and inflation.”
NZD/USD advanced 0.44% to trade at 0.7290.
Meanwhile, concerns about the tensions between the UNITED states and North Korea remained moderate, although they were sensitive to pick up at any time.
The US President, Donald Trump has been set to the address of the organization of the United Nations for the first time on Tuesdsy and Pyongyang was widely expected to be the order of the day.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.21%to 91.61 by 02:15 pm (EST) (06:15 GMT), just off one-week low of 91.57 hit for the night.