New Zealand's currency took a dive after data showed growth of just 0.3% in Q1, as the effects of the country's worst drought in 70 years hampered agricultural output. The kiwi tumbled half a percent on the news.
Fed chief Bernanke said at the press conference following the FOMC statement that the bank's asset purchases may start reducing this year and may end in mid-2014 if economic forecasts are realized, while stressing that a rate hike would follow much later.
The US currency was seen rising as the FOMC kept the benchmark interest rate unchanged and decided not to taper its asset pruchase program.
The Australian currency erased gains from previous trading session as the bearish sentiment prevailed after FOMC statement.
Sterling rebounded, erasing all its previous losses as of European afternoon trading. The pound was bought as investors prepared for the US Federal Reserve FOMC meeting, the single biggest impact event of the day.
The Australian currency has been trading higher on Wednesday after the US opening bell, as a small bullish correction interrupted three days of falling.
The pound ticked slightly higher during European midday trading on Wednesday, while all focus bears down on the Fed's monetary statement along with a speech from its chief Bernanke that will be delivered during New York hours.
Sterling ticked slightly lower versus the dollar after the latest BoE MPC Minutes revealed outgoing Governor King maintained his pro-QE appetite at the June meeting.
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