US Dollar Moves Currency Market Ahead of Fed’s Decision
The US dollar index drew support line at 80.94 and bounced up to 81.32 as investors focus on FOMC meeting, expecting some asset tapering of the $85B bond buying program. In addition to that traders were collecting profits by covering short positions. We will be busy today with economic announcements but we would be cautious in our trading ahead of the Fed’s monetary policy announcement tomorrow. Therefore we expect the greenback to remain in sideways until tomorrow evening between 81.32/80.94 recently created range.
The Reserve Bank of Australia released earlier on Tuesday its September 3 meeting minutes stating that the possibility of reducing rates further is not eliminated but also a reduction is not imminent.
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