30.10.2019: USD steady ahead of Fed’s interest rate decision (USD, JPY, AUD)

30.10.2019: USD steady ahead of Fed’s interest rate decision (USD, JPY, AUD)


Risk aversion is back in the markets as an interim trade agreement between the US and China might not be completed in time for signing in Chile. The daunting news from Turkey also contributed to the weakening of risk appetite. As a result, market sentiment worsened ahead of the Fed’s monetary policy decision. Even positive Australia’s inflation forecast and an increase in Japan’s retail sales were unable to improve it. The antipodean and commodity currencies are under bearish pressure today. The dollar/yen pair slipped by 0.05% to 108.84. Versus the yen, the greenback dropped to 108.89 the day before. Today’s Asian session is unfolding quietly. The US dollar is trading with minor changes as market participants are anticipating the Fed’s decision on its key rate. Some traders have already priced in the interestrate reduction. The dollar/yen pair is highly likely to slide down a little bit after the announcement of the Fed’s decision. Investors’ optimism over an interim trade agreement between the US and China is fizzling away. Risk appetite was fueled by the trade-related optimism over the past few sessions. What is more, US negotiators hinted at a possible delay in signing the trade agreement. Meanwhile, the Austrian dollar is holding firm. Traders are still mulling over strong data on Australia’s economy. The AUD/USD pair is steadily rising to its weekly highs, trying to consolidate above the level of 1.6870. Investors welcomed recent upbeat data which showed that in the 3rd quarter inflation accelerated from 1.6% to 1.7% per year. This is the highest inflation rate since the 4th quarter of last year. So, today traders are taking note of macroeconomic statistics. The euro area will publish some economic reports today. Germany will release preliminary inflation report and labor market data for October. Spain will unveil data on GDP. The ADP employment report from the US is due today as well. The Bank of Canada is likely to maintain the status quo at the end of today’s meeting while the Fed is expected to cut its key rate by 25 basis points. We keep close tabs on market evelopment. Subscribe to our channel and stay up to date with the latest news on the financial markets. See you!

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