The Australian and New Zealand dollars weakened against most of their major counterparts in the Asian session on Wednesday as traders await the outcome of Federal Reserve's policy meeting ending today.
Fed chief Ben Bernanke's press conference will be closely watched for clues regarding when the central bank will scale back its asset purchase program.
With consumer inflation remaining under control, the Fed is expected to maintain its stimulus measures until it sees substantial improvement in employment.
The Conference Board's Leading Index for Australia rose in May by 0.3 percent, the Board reported today.
The Board's Coincident Index also rose 0.3 percent.
The April increase for the Leading Index was its fourth straight monthly rise. The Board said the biggest positive contributions came from the money supply and stock price categories.
The aussie declined to a 6-day low of 0.9433 against the greenback, losing 0.54 percent from Tuesday's close of 0.9484. A collapse below 0.932 level will set the lowest level for the aussie since September 2010.
The aussie that ended Tuesday's deals at 0.9686 against the loonie reached as low as 0.9653. On the downside, the aussie-loonie pair may breach support around 0.96 level.
The aussie reached 1.4194 against the euro for the first time since June 11. Further bearish trend for the aussie below this zone could set its weakest level since August 2011. The aussie may find support around 1.425 level.
The aussie eased from an early high of 90.65 against the yen to 90.05 and showed choppy trading thereafter. The pair closed Tuesday's deals at 90.33.
Japan posted a merchandise trade deficit of 993.916 billion yen in May, the Ministry of Finance said - slipping into the red for the 10th consecutive month.
The headline figure beat forecasts for a shortfall of 1.22 trillion yen following the downwardly revised deficit of 881.9 billion yen in April.
The New Zealand dollar fell to 0.7960 against the greenback, staying closer to Tuesday's multi-day low of 0.7948. If the bear run continues, the kiwi may challenge support around 0.79 area.
New Zealand saw a current account deficit of NZD2.2 billion in the first quarter of 2013, Statistics New Zealand said today.
That missed forecasts for a shortfall of NZD0.635 billion following the revised deficit of NZD2.5 billion in the previous three months (originally reported as a deficit of NZD3.255 billion).
The kiwi edged down to 75.96 against the Japanese yen, reversing from an early Asian session's high of 76.37. The next support level for the kiwi-yen pair lies around 74.5.
The kiwi dropped to 1.6822 against the euro, just few pips away from yesterday's multi-day low of 1.6825. Further downside, the kiwi may seek support surrounding 1.69 area.
The Federal Open Market Committee rate decision is due at 2:00 pm ET. The Federal Reserve is expected to hold rates at 0.25 percent. Fed chief Ben Bernanke will hold a press conference after the meeting.
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.