Australia Markets close in 4 hrs 8 mins

Aussie, Kiwi Move Higher Against Weaker Greenback

Aussie and kiwi rise vs. greenback, focus turns to Fed

Investing.com - The Australian and New Zealand dollars moved higher against their U.S. counterpart on Wednesday, despite the release of disappointing Australian data as sentiment on the greenback remained significantly fragile.

AUD/USD added 0.11% to 0.8092 after the Australian Bureau of Statistics reported that the consumer price index rose 0.6% in the fourth quarter, disappointing expectations for a 0.7% gain.

Year-over-year, consumer prices rose 1.9% in the three months to December, compared to expectations for a 2.0% increase.

A separate report showed that China's official manufacturing purchasing managers' index slipped to 51.3 in January from 51.6 the previous month, compared to expectationd for a downtick to only 51.5.

China is Australia's biggest export partner.

On a more positive note, China's non-manufacturing PMI rose to 55.3 this month from 55.0 in December, beating expectations for an unchanged reading.

NZD/USD advanced 0.80% to trade at 0.7389.

Meanwhile, the greenback moved lower following U.S. President Donald Trump's first State of the Union address late Tuesday.

Amid positive comments on what the U.S. President described as a "New American Moment" characterized by prosperity, rebuilding and cooperation, Donald Trump also underlined the need to end participation in large, multilateral treaties, as well as in unfair trade practices by other nations.

Sentiment on the greenback was also vulnerable ahead of the Federal Reserve's monetary policy statement due later in the day.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.25% at 88.80 by 02:05 a.m. ET (06:05 GMT), remaining within close distance of last week's three-year lows of 88.25.

Related Articles

Dollar underpinned by more hawkish Fed, awaits data for more impetus

Forex - Aussie Slips In Asia After Weak Building Approvals

Forex - PBOC Sets Yuan Parity At 6.3045 Against Dollar, Strongest Since Aug 2015