Yesterday, US stock indexes closed lower as market is preparing for the first interest rate increase in the year by the Federal Reserve. Nasdaq composite lowered 18 points and closed at 5856 thus broke its four day winning streak, Dow Jones industrial Average also down 44 points and closed at 20837 and S&P 500 dropped 8 points and closed at 2365.
U.S dollar is firmer against Yen and Euro as the Federal Reserve started its meeting where a rate rise is expected, Investors are now focusing on Federal Reserve interest rate projections.
In today’s trading Investor are taking wait and see approach ahead of BOJ, ECB and Federal Reserve meeting, even oil prices recovered in today’s session.
Australian dollar is trading higher against U.S dollar on today’s trading; it is supported by the positive economic activity in China and increase in Chinese Consumer sentiment, even traders are sidelined for the expected increase in interest rate decision.
In its note Common wealth bank said that Australian dollar was resilient against the US dollar, it further stated that Australian dollar is moved upward and it attributed Australian dollar movement to encouraging sign in China’s economy which is major partner of Australia, common wealth bank also expect further lifting of AUD after the Australian employment report.
Australian dollar upward movement is also supported by the increase in Westpac Melbourne Institute index of consumer sentiment, index rose 0.1% , this upward movement came after a 2.3% increase in February. On the other hand some analyst still anticipating that Australian dollar and New Zealand dollar to decline against the US dollar in the coming months due to increase in interest rate.