Commerce Department said on Tuesday that personal spending increased more than expected & U.S. rate hike expected before the end of year.
The Australian and New Zealand dollars moved lower against their U.S. counterpart.
This article is originally referred from Traders Trust Blog.
The Australian and New Zealand dollars moved lower against their U.S. counterpart on Wednesday, as the greenback regained some ground after declining broadly due to lower expectations for a U.S. rate hike before the end of the year.
The greenback found mild support after the Commerce Department said on Tuesday that personal spending increased more than expected, by 0.4% in June, while household spending also climbed 0.4% in May.
The report also showed that personal income rose 0.2%, falling short of forecasts of 0.3% growth.
But the greenback remained under pressure after Dallas Fed head Robert Kaplan urged caution on raising U.S. interest rates amid a raft of risks facing the global economy.
Expectations for a U.S. rate hike before the end of year also declined last week’s surprisingly weak U.S. second quarter growth data.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.16% at 95.17, just off the previous session’s five-week lows of 94.94.
Original Source: Traders Trust Blog