Aussie firms ahead of Fed statement

Currencies Direct April 30th 2014 - < 1 minute read

Australia's dollar rose against its US counterpart on Wednesday (30 April) ahead of the Federal Reserve's keenly-anticipated policy announcement later.

AUD/USD climbed to 0.9230 before consolidating slightly lower, up 0.15%. The euro was steady against the dollar at just above 1.38 before key Eurozone inflation data is released.

Sentiment on the Greenback was fragile ahead of the Fed's statement later as investors predict the US central bank to continue the pace of scaling back a bond purchase programme that has suppressed dollar value for years.

The dollar was down against the broadly firmer yen, as the Bank of Japan refrained from rolling out further stimulus.

Inflation data for the 18-member eurozone will be crucial for the euro as another month of disappointing price increases will be taken as a sign that policymakers will have to loosen further to stimulate demand.

Sterling was steady against the dollar, with the GBP/USD exchange rate at little over 1.68, not far off a four-and-a-half year high.

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