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Aussie, kiwi move higher vs. greenback ahead of Trump speech

01/11/2017

The Australian and New Zealand dollars moved higher against their U.S. counterpart on Wednesday, as sentiment on the greenback became vulnerable ahead of a speech by President elect Donald Trump scheduled later in the day.

AUD/USD was up 0.23% at a one-month high of 0.7386.

The greenback weakened as investors eyed Donald Trump’s first speech since his victory in November.

However, losses were expected to remain limited as demand for the greenback continued to be underpinned by expectations for higher interest rates this year.

The Federal Reserve raised interest rates in December and indicated that it expects to hike rates three more times in 2017.

Boston Fed President Eric Rosengren on Monday called for the U.S. central bank to step up the pace of interest rate increases, warning that inflation could overshoot its target if it does not.

NZD/USD edged up 0.13% to trade at 0.7000.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 102.02. The index has retreated since touching highs of 103.82 last week, the strongest level since 2002.