Dollar Declines After Durable Goods Orders, Home Price Data; Fed Decision Eyed

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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