Australia, NZ dlrs RangeBound ahead of Fed Meeting

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SYDNEY, June 15 Reuters The Aussie and kiwi dollars traded in tight ranges ahead of a muchanticipated Federal Reserve meeting, after Reserve Bank of Australia minutes briefly weighed on the Aussie dollar earlier in the day.

Investors are keeping a close eye on the Feds twoday meeting this week for any clues that the U.S. central bank could signal an eventual change to its monetary policy outlook.

The Australian dollar was 0.05 higher at 0.7714. It fell to 0.7696 after the RBA released the minutes from its latest monetary policy meeting.

The RBA signalled its willingness to extend its bond purchase programme next month, according to the minutes, which also showed members discussed tapering and even ceasing its massive quantitative easing campaign when the current A100 billion 77 billion round expires in September.

The Australian currency has stayed within its 0.76460.7891 range since April 15. Traders are also watching a speech by RBA Governor Philip Lowe on Thursday.

Scaling back the amount purchased or spreading it over a longer period and thus reducing weekly purchases at this stage would lead to a stronger AUD and thus a tightening of financial conditions, said David Plank, head of Australian economics at Australia and New Zealand Banking Group.

As such we think the choice for the RBA comes down to repeating the program again or keeping weekly purchases at A5 billion a week but without specifying a total.

The New Zealand dollar was trading 0.21 higher at…

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