Australian Dollar Little Changed as Fed New Looms

 
   By James Glynn 
 

        SYDNEY--The Australian dollar was little changed Wednesday as investors from around the world await the outcome of this week's U.S. central bank policy meeting.
        The Australian dollar was trading at US$0.7314 at 0800 GMT, up US$0.7310 from late Tuesday.
        Investors await the conclusion of the Federal Open Market Committee's two-day policy meeting to learn whether the central bank is moving closer to raising short-term interest rates from near zero, where they have been since December 2008.
        "It's all-quiet on the global financial front as investors await word on the Fed's monetary policy course," said John Kicklighter, chief currency strategist at FXCM.
        "While U.S. policy is more appropriate to steering the economy and market half a world away, this central bank's actions reverberate across the globe," he added.
        Many forecasters expect the Fed to starting raising rates in September.
        Still, Kit Juckes, a strategist at Societe Generale, said the Fed decision "carries a significant risk of being a non-event" as the central bank remains cautious.
        A speech by Reserve Bank of Australia Glenn Stevens Thursday will be closely watched. The central bank is set to hold a policy meeting next week.
        Mr. Stevens said recently that further rate cuts are possible, but added that the risk of overheating housing prices may also rise as a result.
        Financial markets continue to price in a cut, the third this year for the RBA, over the coming months.
        -Write to James Glynn at james.glynn@wsj.com
        (END) Dow Jones Newswires

        July 29, 2015 04:19 ET (08:19 GMT)

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