Dollar Down, Focus Now on Central Bank Policy Decisions By Investing.com
© Reuters.
By Gina Lee
Investing.com – The dollar was down on Tuesday morning in Asia, remaining near recent lows. Investors now await a , and other central bank decisions due throughout the week, for any clues that they will begin asset tapering.
The that tracks the greenback against a basket of other currencies edged down 0.11% to 92.112 by 10:33 PM ET (2:33 AM GMT).
The pair inched down 0.03% to 109.80.
The pair edge d up 0.12% to 0.7448 and the pair inched up 0.06% to 0.7141.
The pair inched up 0.03% to 6.4559 and the pair edged up 0.12% to 1.3851.
With the U.S. Federal Reserve likely to delay beginning asset tapering after the latest U.S. jobs report, the focus is now on policy decisions outside the U.S.
The will go first, handing down its decision later in the day.
If RBA pauses its asset tapering plans, investors are likely to sell the Australian dollar and possibly push it towards its support level of around $0.7420. A hawkish central bank would send the currency higher, according to IG Markets analyst Kyle Rodda.
Next is the , which will hand down its policy decision on Wednesday. The Canadian dollar remains near its highest level in about three weeks and is also above its 200-day moving average at C$1.2525 per dollar.
The will round up the week on Thursday.
The U.S. report, released during the previous week, showed that were lower than expected and put paid to expectations that the Fed would announce it is beginning asset tapering in September.
But how long this delay could be will not be clear for another month, NatWest’s head strategist John Briggs said in a note.
“It does not necessarily derail our current timeline of a November announcement for December start. The next payroll report on Oct. 8 now looms very large as the main event in considering the timing of asset tapering,” the note added.
In Asia Pacific, Chinese trade data, including , and the , will be released later in the day. Further data, including the and price indexes, will be released on Thursday.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Text source: Currency Times
