Aussie, Kiwi Slip Lower after Chinese Data; Eyes on Fed

Aussie, Kiwi Slip Lower after Chinese Data; Eyes on Fed
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(October 31, 2017) The Australian and New Zealand dollars slipped lower against its U.S. counterpart on Tuesday, as investors became cautious amid fresh political tensions in the U.S. and ahead of the Federal Reserve’s policy meeting due to begin later in the day.

AUD/USD eased 0.09% to trade at 0.7683.

Data earlier showed that China’s official manufacturing purchasing managers’ index slipped to 51.6 in October from 52.4 the previous month.

China is Australia’s biggest export partner.

NZD/USD dropped 0.41% to 0.6848.

Markets were jittery after U.S. investigators probing Russian interference in the 2016 presiential election charged President Donald Trump’s former campaign manager, Paul Manafort, and another aide, Rick Gates, with money laundering on Monday.

The greenback had weakened following recent reports that Trump was likely to pick Federal Reserve Governor Jerome Powell as the next head of the U.S. central bank.

In New Zealand, data showed that the ANZ Business Confidence Index dropped to a two-year low of -10.1 in October from 0.0 the previous month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 94.44 by 03:30 a.m. ET (07:30 GMT).

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