Investing.com - The U.S. dollar traded higher against most of its major rivals during Wednesday’s Asian session as traders take a pensive approach to riskier assets ahead of the release of minutes from the Federal Reserve’s most recent monetary policy meeting. Those minutes are due out later Wednesday.
In Asian trading Wednesday, EUR/USD inched up 0.02% to 1.3422. Mediocre economic indicators over the past several weeks have fueled uncertainty as to when the Fed will announce plans to scale back stimulus tools, with solid dating prompting investors to trade on a September start to tapering and weaker data sparking others to bet on a December start date.
Official data released Tuesday showed that German producer price inflation dipped 0.1% in July from a month earlier and was 0.5% higher on a year-over-year basis. Economists had forecast a 0.2% month-over-month increase and a 0.7% annual gain.
GBP/USD fell 0.07% to 1.5658, a decline that appears to be attributable to some profit taking ahead of the Fed minutes. Sterling has been one of the best-performing developed market currencies against the greenback in recent weeks thanks to a spate of solid data reports out of the U.K.
USD/JPY rose 0.20% to 97.46 after the pair flirted with the 97 area during Tuesday’s Asian session. Should the Fed confirm the notion that tapering of its bond-buying program is imminent, traders will likely look to the Bank of Japan to introduce new stimulus measures to assuage skittish global investors.
USD/CHF inched up 0.01% to 0.9176 while USD/CAD rose 0.08% to 1.0403. Earlier Wednesday, the American Petroleum Institute said supplies fell by 1.2 million barrels for the week ended August 16. Analysts expected a decline of 1 million barrels. Gasoline stockpiles fell 3.7 million barrels while distillates jumped by 1.8 million barrels.
AUD/USD fell 0.20% to 0.9053 while NZD/USD shed 0.29% to 0.7958. The U.S. Dollar Index rose 0.05% to 80.98.
In Asian trading Wednesday, EUR/USD inched up 0.02% to 1.3422. Mediocre economic indicators over the past several weeks have fueled uncertainty as to when the Fed will announce plans to scale back stimulus tools, with solid dating prompting investors to trade on a September start to tapering and weaker data sparking others to bet on a December start date.
Official data released Tuesday showed that German producer price inflation dipped 0.1% in July from a month earlier and was 0.5% higher on a year-over-year basis. Economists had forecast a 0.2% month-over-month increase and a 0.7% annual gain.
GBP/USD fell 0.07% to 1.5658, a decline that appears to be attributable to some profit taking ahead of the Fed minutes. Sterling has been one of the best-performing developed market currencies against the greenback in recent weeks thanks to a spate of solid data reports out of the U.K.
USD/JPY rose 0.20% to 97.46 after the pair flirted with the 97 area during Tuesday’s Asian session. Should the Fed confirm the notion that tapering of its bond-buying program is imminent, traders will likely look to the Bank of Japan to introduce new stimulus measures to assuage skittish global investors.
USD/CHF inched up 0.01% to 0.9176 while USD/CAD rose 0.08% to 1.0403. Earlier Wednesday, the American Petroleum Institute said supplies fell by 1.2 million barrels for the week ended August 16. Analysts expected a decline of 1 million barrels. Gasoline stockpiles fell 3.7 million barrels while distillates jumped by 1.8 million barrels.
AUD/USD fell 0.20% to 0.9053 while NZD/USD shed 0.29% to 0.7958. The U.S. Dollar Index rose 0.05% to 80.98.