Investors continue to brace themselves for today’s Federal Reserve meeting, which could have a profound impact on the short term future of the USD. Investor uncertainty is keeping the greenback steady against other major currencies this morning, with the US Dollar Index up by 0.03% at the beginning of the European session on Wednesday.
After several days of strong gains, the Aussie is down sharply against the dollar this morning, with the AUD/USD falling by 0.45% to 1.0442. The primary reason for the decline of the Australian dollar is a decline in Japanese exports. The close proximity of Japan and Australia often cause trends in one economy to influence the other.
Gold & oil Hold Steady
Gold and oil are down slightly, posting only minimal losses as investors lean towards the possibility that the Federal Reserve will not intervene in the U.S. economy. A lack of stimulus will energize the greenback and almost certainly deflate gold prices. Oil may also fall, albeit crude may be more influenced by the debt crisis in the Eurozone and instability in the Middle East. Gold is down by 0.06%, while oil is down by 0.09% this morning.
Today's Federal Reserve Meeting
The meeting minutes for the Federal Reserve meeting, scheduled for release today at 6:00pm GMT, will have a direct influence on the markets, including major currencies and commodities. Investors continue to analyze the markets, but many have already sold for profit. Also today, the Existing Home Sales report will be released at 2:00pm GMT in the United States.
Several key reports will be made available on Thursday, including the Unemployment Claims report in the United States, which will be released at 12:30pm GMT. Also in the U.S., the New Home Sales numbers will be made available. In Europe, the German Flash Manufacturing PMI will be released at 7:30am GMT.