The U.S. dollar continues to remain under pressure since the Federal Reserve decided not to begin unwind its $85 billion monthly asset buying program.
Less than 24 hours after the surprise decision by the Federal Reserve not to begin it highly telegraphed tapering process of its $85 billion purchasing program we find the U.S. dollar mixed against the majors.
Ahead of the FOMC statement / decision to whether to taper or not and by how much gold prices dipped below the all-important $1,300 level struggling to keep its head above the $1,300.
Gold prices are basically flat this morning as gold bugs begin their two day Fed watch. Market participants are anticipating the Federal Reserve to announce the start of its unwinding process to its monthly $85 billion bond buying program at the conclusion of the two day meeting.
The U.S. dollar went on a wild ride Sunday evening on the headlines from Sunday afternoon that Larry Summers has taken his name out of the running for Fed Chairman.
As we head into the weekend traders are focusing on the today’s economic reports and speculation on next week’s FMOC meeting results.
Late yesterday evening (9:30p.m.EDT) the Aussie dollar dropped like a rock on the headlines of disappointing Australia’s unemployment.
The Aussie dollar has climbed to level not seen since July 29 after better than expected Australian Business Confidence report. The Australian Business Confidence report jumped to 6 for the month of August compared to July’s -3 reading.