Dollar Snaps Three-Day Advance Ahead of Growth Data
A gauge of the dollar edged lower as traders waited for US growth and jobs data to assess the strength of the economy. The yen steadied as the Bank of Japan kicked off its two-day policy meeting.
The Bloomberg Dollar Spot Index little changed after rising in the last three sessions. The 10-year Treasury yield slipped one basis point to 4.25%.
The US ADP employment change report due later on Wednesday is on the radar for investors after data this week showed job openings fell in September to the lowest since early 2021.
“FX markets will be largely range-bound in the absence of fresh major catalysts or events” until Friday’s US jobs data and next week’s elections, said Felix Ryan, a foreign-exchange analyst at Australia & New Zealand Banking Group Ltd. in Sydney. “This will likely mean the US dollar remains within recent ranges for the time being”.
USD/JPY consolidated at 153.33 after dropping as much as 0.2% earlier in session.
The BOJ is widely expected to stand pat Thursday in the face of elevated uncertainty, as financial markets brace for the US presidential election.
AUD/USD slipped 0.1% to 0.6556 and NZD/USD edged down 0.1% to 0.5965.
Australia’s core inflation remained elevated last quarter, reinforcing the Reserve Bank’s view that price pressures will take time to dissipate.
Source : Bloomberg
