The US Federal Reserve kept its benchmark rate unchanged in a 10-2 vote on Wednesday, with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting in favor of a quarter-point increase.
The US Federal Reserve is widely expected to leave its policy rate unchanged on Wednesday, with markets pricing in roughly a 9% chance of a hike. Attention shifts to Fed Chair Kevin Warsh's press conference for signals on a possible December move.
Gold rebounded above $4,050 after briefly dipping under $4,000, helped by softer oil prices, even as the US dollar and Treasury yields firmed. OCBC strategists say the metal's next move hinges on the Fed and Thursday's core PCE data.
Gold (XAU/USD) stayed under pressure near the $4,000 mark on Tuesday as a broadly stronger US Dollar weighed on the metal ahead of Wednesday's Federal Reserve policy decision.
AUD/USD slipped 0.24% to around 0.7015 on Monday after touching a one-month high, as traders braced for Australian inflation data on Wednesday and the Fed's rate decision the same day.
TD Securities forecasts September core PCE inflation at 3.1% year-on-year and Q3 US GDP growth at 2.5% annualized, pointing to persistent price pressure alongside still-solid economic activity.
The University of Michigan's Consumer Sentiment Index slipped to 48.0 in October from 48.1 in September, above the 46.3 consensus from Reuters, as households continue to worry about prices.
S&P Global's flash services gauge dipped to 57.9 in October from 59.8, narrowly below the 58.0 estimate, while the manufacturing reading topped expectations at 56.0.
S&P Global's preliminary US October Manufacturing, Services and Composite PMIs are due Friday at 13:45 GMT, with forecasts pointing to a mild slowdown from September's strong readings. The data land days ahead of the Fed's October 28 meeting and could move EUR/USD and the US Dollar.