Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Up, but Fed Asset Tapering Move Guessing Game Keeps Moves Small

ForexAug 31, 2021 11:34PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar was up on Wednesday morning in Asia but was trading near its lowest point in nearly three weeks. Investors continued to keep moves small, with the latest U.S. jobs report, which could provide clues to the U.S. Federal Reserve’s asset tapering timeline, due on Friday.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.10% to 92.730 by 11:25 PM ET (3:25 AM GMT). It fell as low as 92.395 for the first time since Aug. 6 on Tuesday.

The USD/JPY pair edged up 0.16% to 110.19.

The AUD/USD pair inched down 0.01% to 0.7314. The Australian GDP grew 9.6% year-on-year and 0.7% quarter-on-quarter in the second quarter of 2021.The NZD/USD pair inched down 0.06% to 0.7040.

The USD/CNY pair inched up 0.04% to 6.4633, with China’s Caixin manufacturing purchasing managers index (PMI), at a disappointing 49.2 in August, below the 50-mark indicating growth.

The GBP/USD pair edged down 0.11% to 1.3739.

After climbing to a nine-and-a-half month high of 93.734 on Aug. 20, the greenback has since been on a downward trend as some Fed officials suggested that asset tapering would not begin imminently.

While Fed Chairman Jerome Powell said that asset tapering could begin in 2021 at the previous week’s Jackson Hole symposium, he did not provide a concrete timetable. Cleveland Fed President Loretta Mester also said on Monday that she was not yet convinced that recent inflation data satisfied the central bank's price stability goal.

On the data front, the U.S. Conference Board (CB) consumer confidence index was 113.8, a six-month low, while the S&P/Case-Shiller 20 n.s.a. house price index composite grew a record 19.1% in June.

With labor market recovery one of the Fed’s conditions to begin asset tapering, investors will be paying attention to the latest U.S. jobs report that includes non-farm payrolls, due out of Friday.

"The dollar uptrend is over for the time being at least," after Powell successfully separated the debate over taper timing from any decisions about higher rates, National Australia Bank (OTC:NABZY) head of foreign exchange strategy Ray Attrill said in a note.

"Positive price action" in the Australian and New Zealand dollars since their Aug. 20 lows suggests "a base has now been formed for both currencies," the note added.

Dollar Up, but Fed Asset Tapering Move Guessing Game Keeps Moves Small
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email