Published: Thu, September 21, 2017
Business | By Max Garcia

AUD USD Exchange Rate Fluctuates as Markets Await Fed Policy Meeting

AUD USD Exchange Rate Fluctuates as Markets Await Fed Policy Meeting

USA stocks edged up in early afternoon trading on Tuesday, helped largely by gains in telecom stocks, but traded in a narrow range as investors stayed away from making major bets ahead of the Federal Reserve's policy meeting.

The Federal Reserve has four meetings left before Janet Yellen's four-year term as chair ends in February.

The dollar was on tenterhooks, trading sideways against major rivals on Wednesday as investors awaited the outcome of the Federal Reserve's meeting at which it was expected to announce plans to trim its $4.2 trillion in bond holdings.

"Donald Trump's comments overnight in regards to North Korea have certainly added a bid to the precious complex, but all in all very quiet ahead of the (Fed statement)", a trader told reports.

Persistently weak readings of inflation that have remained below the Fed's 2 percent target rate have been a concern for policymakers.

Investors are far from persuaded the Fed will move on rates again this year, with a December change put at less than a 50 percent probability in the futures market 0#FF: . The Canadian dollar was also among the losers after Canadian Central Bank Deputy Governor Timothy Lane said the bank would pay close attention to how the Canadian economy responded to higher interest rates and the stronger Canadian currency.

Financial markets remained largely calm on Tuesday as Trump's speech to the United Nations did little to alter views on the tensions over North Korea's nuclear ambitions.

CURRENCY: The dollar rose to 111.39 yen from Friday's 110.82 yen.

An index that tracks the dollar against six currencies was down 0.3 percent at 91.780, not far from the more than 2-1/2 year low of 91.011 set on September 8.

ENERGY: Benchmark U.S. crude added $1.05, or 2.1 percent, to $50.53 a barrel on the New York Mercantile Exchange. German equivalents edged up less than a basis point to 0.45 per cent.

The Toronto Stock Exchange's S&P/TSX composite index.GSPTSE closed up 63.64 points, or 0.42 percent, at 15,236.67, its highest close since August 8.

The gains in the spot yuan rate was supported by dollar selling by both traders and their bank clients, traders said.

"That competes with Google and Microsoft, and it's going to weigh on the entire tech space", said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

The pan-European FTSEurofirst 300 index closed up 0.1 percent, while MSCI's gauge of stocks across the globe gained 0.21 percent and hit a record closing high as well.

The kiwi dropped to 60.71 euro cents from 61.23 cents, fell to 80.89 yen from 81.27 yen and declined to 4.7697 yuan from 4.7872 yuan.

WALL STREET: U.S. stock markets finished with a slight gain on Tuesday.

That plan, anticipated by markets and not expected to have much immediate impact, will limit the amount of maturing bonds used each month to purchase new ones.

The dollar was down against the Japanese yen USDJPY, -0.16% trading at ¥111.40 compared with ¥111.60 late Tuesday in NY. USA light crude oil futures fell 8 cents to $50.36 a barrel.

Like this: