Joined Nov 11, 2007
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The Aussie Dollar Continues Scrape the Bottom of the Barrel

“The Australian dollar remained lower following a three-day loss against the greenback before theFederal Reserve concludes a policy meeting today.

The Aussie fell to the lowest in almost a week ahead of a news conference by Fed ChairmanBen S. Bernanke that could provide clues on when policy makers will begin scaling back quantitative easing that tends to debase the U.S. currency. New Zealand’s kiwi dollar advanced after data showing a narrowing in the nation’s current-account deficit and the first gain in whole-milk powder prices in two months.

“I think the message is very much nervous, choppy price action going into Bernanke,” saidRobert Rennie, a Sydney-based chief currency strategist at Westpac Banking Corp. (WBC)“Aussie hasn’t traded well. I do think though, that we’re showing some signs of building a base in this 94, 94.50 U.S.-cent region.”

The Australian dollar was little changed at 94.84 U.S. cents as of 4:42 p.m. in Sydney from yesterday, when it dropped 0.6 percent. It earlier touched 94.35, the lowest since June 13. The kiwi rose 0.2 percent to 80.03 U.S. cents, following a 1.6 percent slide over the previous three sessions….”

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