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Dollar pushes lower vs. rivals before FOMC statement

Published 10/28/2015, 08:49 AM
© Reuters.  Dollar extends losses as investors focus on Fed
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Investing.com - The dollar pushed lower against the other major currencies on Wednesday, as sentiment on the greenback became fragile ahead of the Federal Reserve's highly-anticipated policy statement due later in the day.

The dollar was steady against the yen, with USD/JPY at 120.35.

The Fed was not expected to raise interest rates later Wednesday, but many investors still expected the U.S. central bank to signal that rates could still rise at its December meeting.

Data on Tuesday showing that a key measure of U.S. business investment plans fell for a second straight month in September curtailed expectations for higher interest rates.

Orders for nondefense capital goods excluding aircraft, a proxy for company spending on equipment, fell 0.3% in September after a 1.6% decline in August.

Another report showed that U.S. consumer confidence declined this month.

Earlier Wednesday, the Mortgage Bankers Association said their mortgage market index, a measure of mortgage loan application volume, declined by 3.5% in the week ending October 23 to 417.4. That follows a gain of 11.8% to 432.7 in the preceding week.

EUR/USD rose 0.30% to trade at 1.1077.

Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.5293 and was lower against the Swiss franc, with USD/CHF shedding 0.28% to 0.9839.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.87% at 0.7127 and with NZD/USD retreating 0.65% to 0.6719.

The Australian Bureau of Statistics reported on Wednesday that the consumer price index rose 0.5% in the third quarter, disappointing expectations for a 0.6% gain and after an increase of 0.7% in the three months to June.

Year-on-year, consumer prices rose 1.5% in the last quarter, below expectations for a 1.7% rise.

Meanwhile, USD/CAD slid 0.29% to trade at 1.3229.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.27% at 96.75, still close to Friday's two-month highs of 97.30.

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