The major currencies stuck to tight ranges in early Asian trading this morning, as investors awaited the outcome of the Federal Reserve’s March policy meeting which will be later today.
Investors are focused on the Fed to see whether the central bank will affirm its commitment to “patient” monetary policy and for clues about the likely path of U.S. borrowing costs.
Most currencies stayed within well-trodden trading ranges before the Fed decision, as market participants were cautious after taking cues from U.S. data offering new signs the world’s top economy is on a path of slower growth.
Apart from fading trading optimism, Reserve Bank of Australia is encouraging banks not to tighten too much – an indirect hint that the central bank may feel forced to cut rates if major lenders continue to hike mortgage rates.
New Zealand’s current account balance for fourth quarter was -$3.256 billion compared to the previous -$6.175 billion
Also tonight we have the UK’s Consumer price Index, US Interest rate decision and FOMC’s press conference. We’ll wait and see how these data releases will impact our Fiji dollar basket in the morning.