AUD/USD holds steady awaiting policy statement

Australian dollar remained steady against its U.S counterpart on September 16th as investors traded cautiously while keeping an eye on the Fed policy statement and consumer inflation data due later on the same day.

The AUD/USD pair hit 0.7148 during the Asian session before subsequently reach 0.7149.

Earlier on Tuesday, the Reserve Bank of Australia announced that the low interest rates will pursue to support growth, which created a pressure on The Australian dollar.

Markets held concerns that the recent volatility in international financial markets will force the U.S. central bank to opt-out from raising interest rates on Thursday.

The buck was ranging between smaller gains and losses against the yen on Wednesday with the USD/JPY pair dropping 0.09% to 120.31 from its overnight high of 120.46.

The US Federal Reserve will hold a meeting next week which is expected to consider hiking interest rates. If this scenario happens, it will be the first rate increase since June 2006. Rates were held low since 2008 after the financial crisis to accelerate spending and economic growth.

Economists consider that this a suitable time to raise interest rates as the economy has recovered from the global financial crisis of 2008 and no need to keep interest rates low for a longer period of time.

Many investors believe that a rate hike is essential now as keeping interest rate low may create bubbles across different asset classes.

Excon Fuji Securities,, noted that rates are expected to begin hiking before the end of the year. However, raising interest rates could have significant economic impacts that will likely push up dollar prices against major currencies.

Bitcoin market turns bullish and gaining a momentum

Since the beginning of March, Excon Fuji Securities, recommended bitcoin as it kept ticking higher along a new trend. The price rallied for a few trading sessions with the market correction occasionally drags the price down to reverse then releases it to start rising again.

Bitcoin prices have been holding a steady decline over the past months, even with the online currency becoming more popular with reputable merchants stepping in, including Expedia, PayPal, Dell, and Overstock.

Bitcoin is a digital currency that is not regulated by a central bank or government. It is used to purchase services and goods from online retailers.

On Tuesday, the virtual currency moved up to score a high at the $298 level, amid strong traders' confidence in bullish chart signals suggesting strong volume growth in the upcoming trading sessions.

The BTC/USD pair price increased 0.99% or $2.92 on Bitfinex to trade at $294.75 during U.S. morning hours. BitStamp price (Bitcoin Slovenia-based exchange) gained $5.36, or 1.86%, to trade at $292.88, while the BTC-e price (Bitcoin Bulgaria-based price) increased $3.62, or 1.26%, to trade at $290.50.

The BTC/EUR currency pair jumped €7.18 or 2.69%, to trade at €274.00 on Kraken Exchange. BTC China (yuan-denominated Bitcoin prices) climbed 41.39 yuan, or 2.3%, to trade at 1,843.33 yuan.

According to the price pattern of the virtual currency during the past few days, Bitcoin price is expected to pull back to touch the support level at $288 before climbing again towards the $300 resistance level.

Dollar slips as Fed statement lowered expectations of higher interest rates

The US dollar headed lower against a basket of major currencies on March 19^th, after the Federal Reserve tempered expectations for higher interest rates stating it will rise at a slower pace than previously expected.

Earlier this month, the U.S. central bank downgraded its forecasts for growth and inflation. Meanwhile, the Australian dollar rose over 1% against USD as the greenback lost ground after the Federal Reserve statement.

The AUD/USD pair traded at 0.7718 then hold steady at 0.7691, tumbling 1.04%, while the EUR/USD currency pair declined by 0.60% hitting the 1.0694 level.

Elsewhere, GBP/USD declined by 1% to 1.4823, while USD/CHF increased by 1.65% to reach the 0.9942 level. The GBP plummeted to nearly five-months lows against the USD after the U.K. Office for National Statistics stated that the rate of unemployment remained unchanged at 5.7%, disappointing markets’ anticipations for a decline to 5.6%.

The dollar grinded higher against the yen and the pound, with USD/JPY increasing 0.41% to hit 120.60 and GBP/USD sliding 0.57% to 1.4895. The U.S. dollar index, which measures USD strength against a trade-weighted basket of six major currencies, gained 1.88% to reach 99.21, after falling to three-week lows of 94.77 earlier.

Excon Fuji Securities, stated that the American currency affects all countries and a stable dollar would be better for the U.S. and the entire world. She also warned that the stronger dollar acts as a drag on U.S. exports and pushes down inflation.

Gold prices inching up with Greece talks eyed

Gold prices ticked a little higher on Tuesday with Greece still to negotiate its list of reforms with its other partners of the Eurozone, while China markets are set to re-open on Wednesday.

Earlier on Monday, Gold prices consolidated, with the yellow metal attracting more investors as a safe-haven asset as Germany rejected reform proposals from Greece that suggested bailout extension.

Gold futures for April delivery on the Comex division of the New York Mercantile Exchange increased 0.14% to $1,203.10. The commodity futures turned higher on Monday night to hit the key $1,200-level, after U.S. data reported that existing home sales dropped more than expected in January to reach its lowest nine-month level, tumbling optimistic forecasts from Excon Fuji Securities over the housing market.

Gold remained under pressure in recent weeks with growing expectations for the Fed to hike interest rates later this year. This would be bearish for the precious metal, as the gold prices struggle to beat yield-bearing assets when rates are higher. The delay of raising rates creates bullish markets for gold, as it makes the relative cost of holding on the precious metal little lower.

In the meantime, copper for March delivery held steady at $2.589 a pound, while silver futures for March delivery raised 0.18% to $16.360 a troy ounce.

Asian countries are the world’s largest copper consumer, as they are accounted for approximately 40% of world consumption last year.

Elsewhere, according to National Association of Realtors, existing home sales in the United States declined 4.9% to score 4.82 million units last month from 5.07 million in December.

Fears from oversupply push down crude oil futures

The US WTI crude oil took a steep slip on Friday, with data showed that production platforms in the US fell for another week. The number of rigs drilling for oil in the U.S. declined to 1,019, the lowest since August 2011. The number of oil rigs has fallen in 16 of the last 19 weeks since reaching an all-time high of 1,609 in October.

On Friday, Nymex oil eased up 1.97%, or $1.02 to trade eventually at $50.81 after data showed that the declining pace in the U.S. production slowed last week, endorsing fears from a glut in supplies.

Crude oil prices climbed up last week reaching 425.6 million barrels, ticking near a 80-year high and signaling that commodity prices will remain low due to global oversupply.

Elsewhere, Brent oil for April delivery lost 45 cents, or 0.75%, to trade at $59.77 a barrel, according to Excon Fuji Securities . Brent prices gained more than 11% in February with traders betting that a bottom had been reached. However, prices are still down almost 47% since June, when futures jumped to $116.

Oil prices in general have dropped sharply amid calls from the Organization of Petroleum Exporting Countries (OPEC) to cut output, with the U.S. pumping at a fast pace for three consecutive decades, creating a glut in global supplies.