Aussie Drops to Five-Year Low Versus Kiwi as Economies Diverge
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Australia’s dollar dropped to a five-year low against its New Zealand peer after the nation’s central bank said it maintained the option of loosening policy further and the government’s budget deficit widened.
The Aussie traded within one cent of the three-year low of 88.48 U.S. cents reached in August, before Reserve Bank of Australia Governor Glenn Stevens testifies to the House of Representatives Economic Committee tomorrow. Stevens last week marked out 85 cents as a level he’d prefer. New Zealand’s dollar rose against all of its 16 major peers after the government projected a bigger budget surplus.