After statements from policymakers of Bank of England were taken as an indication that it would only hike interest rates gently, the Australian dollar drifted near a one-month high against the British pound.

Investors thought the statements signaled that although the BOE increases rates in November, succeeding rate hikes would not immediately occur.

As a result, a sell-off in sterling across the board was made. Against the Australian dollar, it fell to a low of A$1.6790 from a near four-month high of A$1.7179 hit in late September.

Meanwhile, the Australian consolidated within a narrow range against the U.S. dollar ahead of Australian September jobs data due Thursday where investors eyed onto and employment is assumed to come at 15, 000 and unemployment rate steady at 5.6 percent.


The Aussie traded at US$0.7850, a bit firmer from Tuesday’s US$0.7843. The currency had been experiencing an upward trend since early October and had climbed as high as US$0.7897 last week.

Australian employment has exceeded expectations since the beginning of the year, even as the economy runs below potential. Another robust set of digits will heighten the confidence of central bank about the attitude toward growth.

After it last eased more than a year ago, the Reserve Bank of Australia (RBA) had held interest rates at a record low 1.5 percent.

Australian government bond futures rose, with the three-year bond contract up two ticks at 97.900. The 10-year contract added four ticks to 97.2500.


Other Reports

The New Zealand dollar eased after Global dairy prices dipped for the second time in a row at an auction, signaling an earlier rally was running out of steam.

NZD/USD slumped to $0.7160, from a two-week high of $0.7217 on Tuesday, which now stands as major chart resistance.

Global dairy prices fell 1 percent.

Investors remain looking forward to hearing the announcement of the small nationalist party that holds the balance of power following New Zealand’s unsettled election, whether it would back up the current National Party o center-left labor.

Con Williams, an economist at ANZBank, said in a note, “Until there is a greater degree of political clarity, moves higher are going to be difficult.”

New Zealand government bonds increased, sending yields three basis points lower.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 93.39 by 6:10 AM GMT, just off a one-and-a-half week high of 93.59 hit on Tuesday.

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