Investing.com- The Australian dollar was lower against its U.S. rival in Tuesday’s Asian session as traders await the latest move by the Federal Reserve before bidding up riskier currencies. The Federal Reserve starts a two-day meeting later today.
In Asian trading Tuesday, AUD/USD was lower by 0.15% at 1.0473. The pair is likely to find support at 1.0441, the low of November 26 and resistance at 1.0485, the high of November 25.
During Monday’s session, Aussie dollar bulls were forced to deal with another tepid economic data point out of the country. Australia’s Statistics Bureau said home loans there rose far less-than-expected in October, ticking up 0.1% after a 1.1% increase the previous month.
Analysts had expected home loans to rise 3% in October.
After digesting that data point, traders can now turn their attention to the Fed meeting. It is unlikely that the central bank will unveil fresh interest rate cuts because U.S. rates are already near historic lows. However, traders appear to be betting on fresh monetary stimulus from the Fed.
With Operation Twist drawing to a close later this month, the Fed could announce that it will begin repurchasing Treasuries again. Operation Twist did not inflate the Fed’s balance sheet, but bond buying does and that issue is one to note ahead of the meeting.
Should traders get their wish, that being more monetary easing, the likely result would be a near-term risk on rally that would stoke AUD/USD higher. Traders will have to wait-and-see on that.
Elsewhere, NZD/USD was lower by 0.05% at 0.8346. AUD/NZD dropped 0.11% 1.2552. That pair is trading at its lowest levels in over a month.
In Asian trading Tuesday, AUD/USD was lower by 0.15% at 1.0473. The pair is likely to find support at 1.0441, the low of November 26 and resistance at 1.0485, the high of November 25.
During Monday’s session, Aussie dollar bulls were forced to deal with another tepid economic data point out of the country. Australia’s Statistics Bureau said home loans there rose far less-than-expected in October, ticking up 0.1% after a 1.1% increase the previous month.
Analysts had expected home loans to rise 3% in October.
After digesting that data point, traders can now turn their attention to the Fed meeting. It is unlikely that the central bank will unveil fresh interest rate cuts because U.S. rates are already near historic lows. However, traders appear to be betting on fresh monetary stimulus from the Fed.
With Operation Twist drawing to a close later this month, the Fed could announce that it will begin repurchasing Treasuries again. Operation Twist did not inflate the Fed’s balance sheet, but bond buying does and that issue is one to note ahead of the meeting.
Should traders get their wish, that being more monetary easing, the likely result would be a near-term risk on rally that would stoke AUD/USD higher. Traders will have to wait-and-see on that.
Elsewhere, NZD/USD was lower by 0.05% at 0.8346. AUD/NZD dropped 0.11% 1.2552. That pair is trading at its lowest levels in over a month.