Aussie and Kiwi Rallies on New China Prospects

By TraderVox.com

Tradervox (Dublin) – The Aussie and kiwi have come from a one week low after the Xinhua News Agency reported that reserve  requirement ratio may be cut in China. The two south pacific dollars had fallen earlier due to a decrease in raw material prices reported by Standard and Poor’s GSCI Index. The New Zealand dollar dropped to a week low against the US dollar while the Aussie shed 0.3 percent.

After the report by S&P the New Zealand dollar depreciated by 0.6 percent against the greenback to trade at 81.59 US cents; it had earlier touched its weakest since April 11 when it traded at 81.46 US cents during the US session. The kiwi also dropped against the yen by 0.1 percent to trade at 66.30. The kiwi had remained low on speculation that the Reserve Bank of New Zealand would refrain from increasing the interest rates. The Australian dollar dropped by 0.3 percent against the US dollar to trade at $1.0359 and dropped by 0.2 percent against the yen to exchange at 84.17.

These declines has however been overturned as Xinhua News Agency indicated that reserve requirement ratio in China would be reviewed downwards. China is the major trading partner for both south pacific nations and good news from China strengthens both kiwi and Aussie. The two rose against the yen as reports from Japan showed that it registered a trade deficit in March. However, the kiwi rise was limited by reports showing that consumer prices rose by less than what was expected.

The New Zealand dollar advanced against the dollar by 0.2 percent to trade at 81.78 US cents from an earlier drop to 81.46 cents. It rose by 0.5 percent against the Yen to trade at 66.62 yen. The Australian dollar rose by 0.3 percent against the US dollar to exchange at $1.0388; it advanced by 0.4 percent against the yen to trade at 84.47.

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