Markets continue to ponder the anticipated actions of the United States Federal Reserve Bank, resulting in a subdued U.S. Dollar in Asian trading today. As reported at 2:49 p.m. (JST) in Tokyo, the U.S. Dollar Index remained relatively flat, trading at 76.407 .DXY, well off the 6-week high hit last week.
Analysts are expecting that the Federal Reserve will continue to espouse a dovish tone, and will make little mention of the recent strong economic data.
The two day policy meeting begins today, and while most market players don’t believe a change in interest rates is forthcoming, they’re interested to read the spin that the Fed puts on the latest upbeat news.
Adding to investor wariness will be the release later today of November’s figures on U.S. producer prices and industrial production, as well as the National Association of Home Builders’ housing index for this month.
In Australia, the recently concluded meeting of that country’s central bankers sent the Australian Dollar lower, to trade at $9.9128, a decline of .5% following the equivalent rise yesterday.
The Reserve Bank of Australia minutes indicated that the bankers’ decision to raise interest rates 25 basis points was “finely balanced” and aimed at maintaining appropriate fiscal policy given the improved economic conditions.
U.S. Dollar Index Subdued in Advance of Fed Meeting Today
DailyForex.com