Market speculations that the growth of the United States' economy will stagger to a point of a slowdown have provided a boost to the Australian and New Zealand dollars.

Reports that the Federal Reserve will likely keep interest rates at close to zero, have increased the allure of the Australian and NZ dollars. This occurred after the data on US home sales fell in May sending jitters to the U.S. stock market.

The Federal Open Market Committee will end its two-day meeting today and analysts expect them to hold the benchmark interest rate at a record low range of zero to 0.25 percent.

As of 8:42 a.m. in Sydney, Australia's currency traded at 87.30 U.S. cents from 87.16 cents in New York. On June 21, it rose to 88.59, the highest since May 17.

New Zealand's dollar bought 70.54 U.S. cents from 70.41 yesterday. It advanced to 71.53 on June 21, the strongest since May 14.

Earlier, the two currencies diminished earlier losses as the Reuters/Jefferies CRB Index of 19 raw materials rose as much as 0.2 percent after falling 0.7 percent. The Standard & Poor's 500 Index advanced as much as 0.5 percent after skidding 0.4 percent.

According to an analyst from FOREX.com, a subsidiary of the online trading firm Gain Capital in Bedminster, New Jersey, the Federal Reserve will most likely stand firm on interest rates extending some yield advantage to the Australian and NZ dollars.

Another analyst from the HSBC's foreign exchange management service said a bullish outlook remains for the two currencies.