© Reuters. Aussie declined against greenback, kiwi gains ground in late trade
Investing.com – The Australian dollar fell against its U.S. counterpart on Wednesday, after the release of disappointing Australian economic growth data, while the New Zealand dollar moved higher as fresh U.S. political concerns surfaced.
AUD/USD slid 0.37% to 0.7579.
Earlier Wednesday, the Australian Bureau of Statistics said that gross domestic product expanded by 0.6% in the third quarter, disappointing expectations for a growth rare of 0.7 and fdown from 0.9% in the three months to June.
Year-over-year, Australia’s economy grew at a rate of 2.8% in the last quarter, compared to expectations for a growth rate of 3.0%.
NZD/USD climbed 0.41% to trade at 0.6904.
Meanwhile, sentiment on the greenback weakened due to the possibility of a U.S. government shutdown if lawmakers fail to reach a budget agreement this week. Government funding is set to expire Friday.
The U.S. dollar was initially boosted after the U.S. Senate passed a tax overhaul package over the weekend amid expectations that tax cuts for corporations will stimulate the U.S. economy.
Some investors also believe the boost to the economy will prompt the Federal Reserve to raise interest rates at a faster pace.
Republicans are aiming to send a final tax bill to the White House before Christmas, with the House and Senate working to reconcile separate versions of the plan.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 93.22 by 02:10 a.m. ET (06:10 GMT).
Forex – Aussie Falls on Weak Data, Kiwi Moves Higher
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.