Breaking News

Sun Hung Kai's Thomas Kwok Sentenced to 5 Years in Jail
Tweet TWEET

Aussie, N.Z. Dollars Advance as Fed Ready With Stimulus

The Australian and New Zealand dollars rose after minutes of the Federal Reserve’s latest policy meeting showed officials remain supportive of more stimulus unless the economy shows signs of expansion.

The South Pacific nations’ currencies fell earlier versus most of their major peers as Asian stocks declined ahead of manufacturing gauges due today in Europe and China. Australia’s dollar earlier touched a one-month low against the euro before discussions this week between Europe’s leaders amid speculation they can agree on ways to contain their debt crisis.

The U.S. dollar’s decline on the Fed was “very broad based -- we’ve seen it both in the yen and the higher-yielding crosses,” said Jens Nordvig, managing director of currency research at Nomura Holdings Inc. in New York. “It’s pretty much across the board.” Higher-yielding currencies include the Australian and New Zealand dollars.

Australia’s dollar rose 0.2 percent to $1.0505 yesterday in New York after climbing 0.4 percent to $1.0487 the day before. The Aussie fell 0.7 percent to 82.55 yen.

The New Zealand dollar rose 0.4 percent to 81.40 U.S. cents, following a 0.3 percent gain the day before. The kiwi fell 0.5 percent to 64.96 yen.

The MSCI Asia Pacific Index (MXAP) of stocks slid 0.5 percent.

The purchasing managers reports are forecast to show continued contraction in German and French manufacturing, with the measure for the euro area as a whole forecast to indicate a shrinkage for a 13th-straight month, according to surveys conducted by Bloomberg News. A report on Chinese manufacturing from HSBC Holdings Plc is also due.

Many Federal Reserve policy makers said additional stimulus probably will be needed soon unless the economy shows signs of a durable pickup, according to minutes of their most recent meeting. Fed officials next meet on Sept. 12-13.

To contact the reporters on this story: Cordell Eddings in New York at ceddings@bloomberg.net; John Detrixhe in New York at jdetrixhe1@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.