Dollar Slips Ahead of Fed Decision, Aussie Holds Ground
The U.S. dollar weakened against all major G-10 currencies ahead of the Federal Reserve’s policy meeting, where rates are widely expected to remain unchanged. Some profit-taking occurred as the dollar had rallied in the past few sessions.
Australia’s dollar briefly dipped following slower-than-expected inflation data, but later stabilized at 0.6511 against the U.S. dollar. The softer inflation supported expectations of a possible rate cut by the Reserve Bank of Australia as early as August.
The Japanese yen strengthened by 0.3% to 148.04 per dollar, partly due to potential repatriation flows following a tsunami warning in Tokyo Bay after a strong earthquake. Meanwhile, EUR/USD and GBP/USD were little changed at 1.1550 and 1.3351 respectively.
Analysts say the FOMC meeting is more of a “placeholder,” as the labor market cools without collapsing and inflation remains uncertain. Strategists remain cautiously optimistic on the Australian dollar, suggesting long positions with modest upside potential.
Source: Newsmaker.id
