Dollarflat as Lack of Details in Fed Minute Disappointments by Investing.com

By Gina Lee

Investing.com – The dollar was flat in Asia on Thursday morning over disappointing minutes from the last US Federal Reserve meeting.

It that the greenback trades against a rate with other currencies up 0.03% to 93,052 by 9:44 PM ET (2:44 AM GMT).

The minutes, released on Wednesday, gave investors some clues as to whether the Fed will adopt a more devilish policy framework in the coming months.

Although it was widely expected that the policy would adopt an average inflation target and attempt to push inflation above 2%, the minutes were vague on the issue. They stated that “a number” of Fed members suggested that it would be useful to make a revised statement on their policy strategy at some point, without further details.

“Traders hope [the minutes] would cement a clear consensus in the ranks of the Fed for a series of key changes at the September 18 meeting, “Pepperstone head of research Chris Weston told Reuters.

“[But] there seems to be little consensus in the Fed collective to adopt an inflation-oriented regime, which is what so many stand for. “

The minutes also hit a grim note on the US recovery of COVID-19, with Treasuries seeing a modest sell-off following the minutes of public Fed skepticism about limiting government bond yields to encourage recovery and investment .

Some investors warned that the dollar could stay on a decline longer, with short bets against the greenback at its highest level since 2011 and long bets on the Euro also saw a record high.

“All that was needed to support the dollar was a catalyst; the minutes provided the catalyst, ”Commonwealth Bank of Australia (OTC) money management analyst Joe Capurso said.

“Nevertheless, we still expect the dollar to follow lower. “The rest of the world economy, led by China, has recovered … we are considering the fall of the AUD overnight as a short-term pothole along a higher trend,” he added.

Investors will now see if the Fed will discover more details during the Jackson Hole symposium, due to take place from August 27-28, than at the next Fed meeting in September.

The pair was also flat, with 0.02% up to 106.12.

The pair moved 0.12% to 0.7172 and the pair dropped 0.03% to 0.6555.

The pair rose 0.07% to 6.9243, with US-China tensions continuing to rise after the US halted its extradition treaty, as well as ending mutual tax treatment, with Hong Kong earlier in the day. The People’s Bank of China is also set to release her later in the day, which is widely expected not to change.

The pair inches 0.01% to 1.3100.