US dollar is trading near a 4-week low on Tuesday as traders wait for the outcome of the Federal Fed’s 2-day policy meeting at which it’s expected to announce a modest reduction in its bond-buying stimulus. Also pay attention to US CPI data at 12:30 GMT.
EUR/USD is consolidating in the $1.3325/42 range. Yesterday the pair closed 60 pips lower from the $1.3385 high, but left the opening bullish gap open. Pay attention to the ZEW sentiment indices at 9:00 GMT – they are expected to reach the new highs. GBP/USD strengthened from the daily low of $1.5888 to $1.5915. Great Britain will release a bunch of inflation data at 8:30 GMT.
USD/JPY rose to 99.35. USD/CHF is correcting down a bit after it added about 40 pips yesterday to 0.9278. AUD/USD is trading just above $0.9300 after it tested $0.8185 earlier today. Aussie weakened after the minutes of the Reserve Bank of Australia’s last policy meeting released today showed that the central bank retains the option of reducing interest rates and said a further decline in the local currency would aid the economy. NZD/USD closed yesterday below the 200-day MA at $0.8180. Kiwi’s supported around $0.8155. USD/CAD has slightly recovered from the yesterday’s low of 1.0280 to 1.0325.Publication source