AUD/USD has posted modest gains on Wednesday, as the pair trades just above the 0.89 line. The Australian dollar is enjoying some momentum, having improved over 100 points this week. On the release front, the FOMC concludes its policy meeting, with the Fed expected to wind up its QE program. There are no Australian releases on Wednesday.
In the US, durable goods looked dismal in September. Core Durable Goods Orders dropped 0.2%, its second decline in three months. This was well short of the estimate of 0.5%. Durable Goods Orders followed suit with a decline of -1.3%. This was the indicator’s second straight decline and missed the estimate of 0.4%. Later in the day, the US releases CB Consumer Confidence, with the markets anticipating a strong September reading.
The Federal Reserve will be at center stage on Wednesday, as a two-day meeting wraps up with the release of a policy statement. The Fed is expected to wind up QE, and if policymakers delay this move, the dollar will likely take a hit against its major rivals. The markets will also be looking for hints regarding the timing of a rate hike, which is expected sometime in 2015. Traders should treat this release as a market-mover which could have a significant impact on the currency markets.
AUD/USD 0.8900 H: 0.8911 L: 0.8854
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