Market News
Dollar steady as Fed decision nears; Aussie climbs after RBA stance - REUTERS
By Gregor Hunter and Lucy Raitano
Summary
- Investor confidence brittle after earthquake strikes Japan
- U.S. Treasury bonds stabilise after three-day selloff
- Yen firmer after 5-year JGB auction attracts bids
SINGAPORE/LONDON, Dec 9 (Reuters) - The dollar held steady on Tuesday ahead of an expected rate cut from the Federal Reserve, while the Aussie dollar was firmer after its central bank ruled out more easing.
Markets are anticipating a rate cut from the Fed, and preparing for several more central bank decisions before the weekend.
"The Fed is tomorrow so market participants probably aren't really looking for repositioning ahead of this," said Michael Pfister, FX analyst at Commerzbank.
The U.S. dollar index , which measures the greenback's strength against a basket of six currencies, slipped 0.1% to 98.977.
Traders are also looking ahead to the U.S. NFIB's small business optimism index for November as well as the Job Openings and Labor Turnover Survey (JOLTS) for October due later in the session.
Bond investors are dialling back expectations of rate cuts in 2026 as scepticism mounts that Kevin Hassett, the frontrunner to succeed Jerome Powell, whose eight-year term as Fed chair ends in May, will prove as dovish as hoped by U.S. President Donald Trump.
Nevertheless, markets believe policy easing from the U.S. central bank this week is a near-certainty, with attention turning to the outlook for the year ahead.
