The dollar gained marginally in Asia on Wednesday, while it continued to trade at its lowest level within a three-week period. Investors treaded cautiously as data on the US job market coming Friday will be crucial to the US Federal Reserve’s asset-cutting strategy.
The dollar climbed to 93.734 on August 20, its highest value in the past nine and a half months. However, since then, the greenback has seen a largely negative rise in value, with some US Fed officials indicating that the tapering process will not begin immediately. US Federal Reserve Chairman Jerome Powell said the asset tapering process could begin in 2021, but refrained from giving a specific date or month. Cleveland Fed Chair Loretta Meester also said the Fed is not entirely confident of inflation data to achieve its price stability objective.
The US Conference Board Consumer Confidence Index was recorded at 113.8, the lowest in the past six months, though the House Price Index Composite rose with a substantial rate of 19.1% in the month of June. The most important parameter to consider for the Fed is labor market data, set to be released this Friday. Labor market recovery is one of the primary conditions for the US Fed to begin the asset tapering process. Hence, forex broker Will take a closer look at the data when it comes into the public domain on Friday.
The value of the US dollar index was down on Tuesday and fell to 92.395 – its lowest value since August 6, 2021. While the USD/JPY rose 0.16% to 110.19, the AUD/USD pair fell 0.01% to 0.7314. On the other hand, USD/CNY rose 0.04% to 6.4633. The GBP/USD pair also lost 0.11% and fell to 1.3739.
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