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The Australian and New Zealand dollars faced losses on Wednesday amid doubts about China’s stimulus measures, while the U.S. dollar remained near two-month highs against major currencies on expectations of gradual interest rate cuts in the United States.

New Zealand’s currency was also weighed down by cooling Inflation data, signaling the possibility of aggressive easing by the country’s Central bank. The Australian dollar dropped to $0.6678, while the New Zealand dollar fell to $0.6051.

Concerns about China’s commitment to stimulus measures led to a decline in Chinese Stocks. Meanwhile, speculation about a significant cut in Interest rates by the Reserve Bank of New Zealand increased following the release of Inflation figures.

The U.S. dollar index, which measures the currency against other major rivals, held steady at 103.25, reflecting a more positive outlook on the U.S. economy and slightly higher Inflation rates in September.

Traders are now expecting a 25 basis-point rate cut by the Federal Reserve in November, with reduced odds of a larger 50 basis-point reduction. The dollar remained stable against the yen and the euro, with the European Central bank expected to announce an interest rate cut on Thursday.

Image: An illustration photo of Australian dollars.

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