U.S. Dollar Index holds Steady on Mixed Economic News

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By: Barbara Zigah
The U.S. Dollar Index continues to hold its own versus a group of major currencies, trading at 76.130 .DXY, following the 2-week high established yesterday at 76.328 .DXY. The U.S. Dollar Index is a measure of the greenback’s value against a group of six major currencies. Yesterday’s economic news out of the United States was mixed, and prompted investors to trim risky positions. October’s consumer confidence index dropped from 53.4 last month to 47.7, while the home price index climbed for the 4th month in a row. According to one foreign exchange dealer in Japan, the decline in consumer confidence spotlights investor concerns about the economic recovery in the U.S.

One so-called higher yielding/higher risk currency which did well, albeit briefly, in Asian trading was the Australian Dollar, which saw slight gains following the release of a better-than-expected consumer price index from Australia. The Aussie traded against the U.S. Dollar at $0.9208 but later retreated to $0.9116, a .6% decline on the day. Investors still anticipate that the Australian central bank will need to raise interest rates, a topic which will be discussed at the November 3rd meeting of the bank board.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.