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Aussie holds steady, kiwi moves higher vs. greenback

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The Australian dollar was almost unchanged against its U.S. counterpart on Wednesday, while the New Zealand dollar moved higher as markets continued to digest last week’s Brexit vote.

AUD/USD was steady at 0.7387.

The greenback lost ground on Tuesday as concerns over the effects of the U.K. decision to leave the European Union began to ease, fuelling demand for riskier assets.

Investors’ optimism was also boosted after the U.S. Conference Board said its index of consumer confidence rose to 98.0 this month from a reading of 92.4 in May.

The report came after the third estimate of first quarter U.S. growth domestic product showed growth of 1.1%, revised up from the initial reading of a 0.8% rise. Analysts had expected growth to settle at 1.0%.

NZD/USD rose 0.35% to trade at 0.7071.

The rebound in risk sentiment also continued to push oil prices higher, which lent support to the commodity currencies.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 96.15, still close to Monday’s three-month highs of 96.86.

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Paul

The author Paul