The Australian and New Zealand dollars fell against their 15 major peers as declines in global stocks reduced investor appetite for the countries’ higher yielding assets.
The Aussie weakened for the third day against the yen after rising to a three-month high last week. Austrlia’s currency traded 0.7 percent from an almost five-year low versus its New Zealand counterpart on bets interest rates at the nations’ central banks will diverge.
“The equity market’s opened on a softer foot, and we’re seeing a bit of weakness in the Aussie dollar as some risk comes off the table,” said Jim Vrondas, the Sydney-based chief currency and payment strategist at OzForex Ltd. “I don’t expect it to have a long-lasting effect.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.