Forex
AUD/USD Slides Ahead of Fed Decision, Rate Hike Odds Rise
The Australian Dollar has continued its recent slide ahead of this week's Federal Open Market Committee (FOMC) decision. The AUD/USD pair is trading near the 0.7120s, down from the four-month highs it set near 0.7200 earlier in the month.
The US Dollar, tracked by the DXY Index, is holding just below the 100.00 mark and has strengthened on the day as traders position themselves before the FOMC announcement.
A 25-basis-point (bps) rise to 3.75%-4.00% in interest rates is now seen as a likely outcome by markets, following Chair Kevin Warsh's warning that inflation had not meaningfully improved and the recent solid August jobs report.