Aussie & Kiwi Retreat as Fed Considers Removing Stimulus

The New Zealand dollar fell and the Australian dollar reversed its upward trend versus the US dollar today on the speculation that the Federal Reserve may end its asset-purchasing program, reducing amount supply of the US currency.

The positive macroeconomic data spurred talks about the potential end of the quantitative easing. The Bank of St. Louis President James Bullard said March 26:

The economy is looking pretty good. It is still reasonable to review QE2 in the coming meetings, especially this April meeting, and see if we want to decide to finish the program or to stop a little bit short.

AUD/USD retreaded to 1.0267 as of 11:31 GMT today after it rose earlier from 1.0240 to 1.0312. NZD/USD fell from 0.7515 to 0.7492 after it climbed earlier to 0.7535.

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