AUD/USD has posted modest gains on Tuesday, after a slow start to the week. Early in the North American session, the pair is trading in the mid-88 range. The Australian dollar took advantage as US Core Durable Goods Orders posted a decline of 0.2%. Later in the day, the US releases CB Consumer Confidence. The markets are expecting a strong reading, so we could see the US dollar recover some of today’s earlier losses. There are no Australian releases on Tuesday.
In the US, durable goods looked dismal. 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 a 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 0.8849 H: 0.8882 L: 0.8789
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