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29 Jul 2015
Commodity currencies drop ahead of the FOMC statement
FXStreet (Mumbai) - The commodity currency pack has weakened against the American dollar despite even though the Chinese equity markets stabilized and clocked 3% gains today.
The Kiwi had strengthened earlier today after RBNZ governor said the economy is not weak enough for more aggressive rate cuts. However, the USD demand spiked in the early European session, pushing the NZD/USD pair below 0.67 handle. The pair now trades around 0.6670; down 0.10% on the day.
Meanwhile, the weakness in the commodity prices continues to weigh over the Aussie. The AUD/USD pair fell 0.40% to trade around 0.7300 handle. The AUD was also a victim of a drop in the AUD/NZD cross after RBNZ governor’s comments.
The Canadian dollar also trades moderately weak, tracking 0.5% fall in Crude prices in the US. The USD/CAD pair strengthened 0.20% to trade around 1.2950 levels.
Investors remain focused on the FOMC statement due for release later today. It is widely expected that Fed would reiterate that “lift-off” is data dependent and express concerns regarding the turbulence in China and weakness in commodities.
The Kiwi had strengthened earlier today after RBNZ governor said the economy is not weak enough for more aggressive rate cuts. However, the USD demand spiked in the early European session, pushing the NZD/USD pair below 0.67 handle. The pair now trades around 0.6670; down 0.10% on the day.
Meanwhile, the weakness in the commodity prices continues to weigh over the Aussie. The AUD/USD pair fell 0.40% to trade around 0.7300 handle. The AUD was also a victim of a drop in the AUD/NZD cross after RBNZ governor’s comments.
The Canadian dollar also trades moderately weak, tracking 0.5% fall in Crude prices in the US. The USD/CAD pair strengthened 0.20% to trade around 1.2950 levels.
Investors remain focused on the FOMC statement due for release later today. It is widely expected that Fed would reiterate that “lift-off” is data dependent and express concerns regarding the turbulence in China and weakness in commodities.