Dollar Declines After Durable Goods Orders, Home Price Data; Fed Decision Eyed
October 28 2014 - 10:59AM
RTTF2
The U.S. dollar fell against its major opponents on Tuesday, as
U.S. durable goods orders unexpectedly showed a notable decrease in
September and S&P/Case-Shiller home price index came in below
forecasts in August, with investor focus on the Federal Reserve's
monetary policy meeting starting today.
A Commerce Department report showed that durable goods orders
fell by 1.3 percent in September, defying expectations for an
increase of 0.5 percent. The durable goods orders had plunged by
18.3 percent in August.
The S&P/Case-Shiller 20-City Composite Home Price Index
increased at an annual rate of 5.6 percent in August, reflecting a
notable slowdown from the 6.7 percent growth reported for July.
Economists had expected the pace of year-over-year growth to slow
to 5.8 percent.
With the U.S. Federal Reserve beginning two-day policy meeting
today, economists expect the U.S. central bank to announce an end
to its bond-buying program in the belief that the American economy
is strong enough to sustain growth.
The bank is expected to keep its guidance that its short-term
interest rate will stay between 0 percent and 0.25 percent for a
"considerable time," in response to falling inflation expectations
and the volatility in financial markets recently.
Reversing from an early high of 1.6087 against the pound, the
greenback slipped to a 1-week low of 1.6181. The greenback is
likely to find support around the 1.62 zone.
The greenback hit a weekly low of 1.2764 against the euro from
an early high of 1.2684. If the greenback continues its slide, 1.29
is seen as its next possible downside target level.
After advancing to 0.9510 against the Swiss franc at 5:30 am ET,
the greenback hit a 1-week low of 0.9444. The greenback is poised
to seek support around the 0.94 area.
The greenback eased back to 107.68 against the yen, after having
advanced to 108.16 at 7:45 am ET. The next possible support for the
greenback-yen pair may be found around the 107.00 region.
The greenback declined to a 6-day low of 0.7958 against the NZ
dollar and a 4-day low of 1.1201 against the loonie, retreating
from early highs of 0.7882 and 1.1252, respectively. Extension of
the greenback's downtrend may lead it to support levels of 0.804
around against the kiwi and 1.11 against the loonie.
The greenback slipped to 0.8881 against the aussie, its weakest
since October 9. Continuation of the greenback's downtrend may see
it finding support around the 0.895 level.
The U.S. consumer confidence index for October is set for
release at 10:00 am ET.
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