The Australian dollar dropped against its U.S. counterpart on Wednesday, as the greenback found broad support ahead of the Federal Reserve’s monthly policy statement due later in the day.
AUD/USD hit 0.7709 during late Asian trade, the pair’s lowest since June 15; the pair subsequently consolidated at 0.7713, declining 0.51%.
The greenback remained support as investors eyed the Fed’s rate statement later Wednesday for any clear signal about a possible timeline for hiking interest rates, which have remained close to zero since late 2008.
On Tuesday, data showing that U.S. building permits rose to an almost eight-year high in May added to the view that the economy is regaining momentum after a weak first quarter.
Housing starts fell last month following strong gains in April but remained at levels consistent with a strengthening housing market.
The Aussie was steady against the New Zealand dollar, with AUD/NZD at 1.1082.
Earlier Wednesday, Statistics New Zealand reported that the country’s current account swung into a surplus of NZ$0.66 billion in the first quarter from a deficit of NZ$3.19 billion in the last three months of 2014.
Analysts had expected the current account to hit a surplus of NZ$0.23 billion in the last quarter.