US Dollar
The US Dollar traded moderately higher trimming early losses against the most major currencies after yesterday's weaker-than-expected U.S. economic data. The NAHB housing market index declined to 55 in February from 57 in January. Analysts had expected the index to rise to 58. The NY Fed Empire State manufacturing index declined to 7.78 in February from 9.95 in January, missing expectations for a fall to 9.1.
Today, the market participants await a set of important U.S. data including Building Permits, Housing Starts, the PPI, Industrial Production and the minutes of the last Federal Open Market Committee meeting.
EURO
The EUR/USD has stabilized in the Asian market on Wednesday against the US dollar. Investors await the developments between Greece and the European Union before the deadline expires.
The British pound
The GBP/USD settled in the Asian market on Wednesday within a limited range of transactions against the US dollar as investors anticipate important UK figures to be released later today.
Australian dollar
The AUD/USD traded almost flat on Wednesday after the minutes of the RBA meeting were published yesterday. The bank mentioned that a lower growth and inflation outlook and Chinese demand for commodities as reasons for this month's decision to lower interest rates after a 17-month pause. This decision was taken to support demand and to achieve balanced growth.
On late Tuesday, the Conference Board Australia Leading Index came in for the month of December with an upbeat reading of +0.4% compared to +0.1% in the previous month. Australia's Leading Index climbed +0.1% in January. Chinese markets are closed today for the Lunar New Year holiday
Japanese yen
The Japanese yen traded moderately stronger against the greenback on Wednesday after the Bank of Japan held its unprecedented monetary policy steady after an 8 to 1 vote. Interest rates were not changed and remain at 0.10% and the Monetary Base Target was left at 275.
The outlook for exports and factory output was upgraded and consumption remains firm according to BOJ Governor Kuroda. Inflation is slowing due to falling energy costs. He stated that the BoJ won't hesitate to achieve the price target and change policy if necessary.