Australia’s dollar held its sharpest loss in two months after consumer confidence dropped and iron ore prices fell to the lowest since September 2012.
New Zealand’s kiwi touched the lowest this month after Fonterra Cooperative Group Ltd. said whole-milk powder prices declined for a seventh auction. The yen held near a three-month high against the greenback after the Bank of Japan refrained from expanding stimulus, while the U.S. yield premium over Japan shrank before the release of minutes from the Federal Reserve’s April meeting.
“The relationship may be reasserting itself between the Australian dollar and commodity prices,” said Hamish Pepper, a strategist at Barclays Plc in Singapore. “If we look at Australia’s commodity prices overall on a trade-weighted basis, they’ve been pretty weak this year.”
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