Week Ahead of Fed Meeting: Dollar Soft

This trading week was not good for the US dollar even as traders continued to speculate about possible quantitative easing tampering at the next week’s Federal Reserve policy meeting. The currency ended the week mostly lower against other majors.

Chances for a war in Syria were falling, reducing demand for the dollar as a safe investment. The unexpected drop of jobless claims revived the US currency even though it was attributed to statistical error. Yet decline quickly resumed as other fundamental reports unexpected drop of jobless claims.

NZD surged versus USD on signs that the central bank is considering an interest rate hike. Even AUD managed to outperform USD despite terrible employment data, though it closed significantly below the weekly high.

EUR/USD advanced from 1.3161 to 1.3301 this week. NZD/USD climbed from 0.8000 to 0.8135. AUD/USD closed at 0.9247 after rallying from 0.9199 to 0.9353 during the week.

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