The US dollar steadied on Tuesday as traders awaited a widely expected interest-rate cut from the Federal Reserve, while the Australian dollar strengthened after the Reserve Bank of Australia signaled no further near-term easing.
Investors are positioning ahead of the Fed decision, with several other major central banks also set to announce policy moves before the end of the week.
Michael Pfister, FX strategist at Commerzbank, said, “The Fed meeting is tomorrow, so we’re unlikely to see major repositioning before then.”
The dollar index, which measures the US currency against six major peers, slipped 0.1% to 98.977.
Traders also look ahead to the NFIB Small Business Index for November and October’s JOLTS job openings data due later in the session.
Bond investors have scaled back expectations for the pace of rate cuts in 2026, as doubts grow…
