RESEARCH VIA DAILY I FOREX REPORT 18 JUNE 2014

 DAILY CURRENCY UPDATE

Dollar firm ahead of Fed, BoE minutes eyed
The dollar was supported against a basket of other major currencies on Wednesday as stronger than expected U.S. inflation data boosted expectations for a more hawkish stance on interest rates from the Federal Reserve.

USD/JPY edged up 0.08% to 102.22, from 102.13 late Tuesday.
 
The dollar strengthened after the Labor Department said Tuesday that U.S. consumer prices rose 0.4% in May from a month earlier, bringing the annual rate of inflation to 2.1%. It was the fastest monthly increase in inflation in more than a year, beating forecasts of 0.2%.
 
The uptick in inflation indicated that the economic recovery is deepening and boosted expectations for a more hawkish stance on interest rates from the Fed.
 
Investors were looking ahead to the bank’s post-policy meeting press conference with Chair Janet Yellen later Wednesday, as they awaited fresh indications on the timing of possible interest rate increases.

NZD/USD edges higher, eyes on Fed statement
The New Zealand dollar edged higher against its U.S. counterpart on Wednesday, although markets were jittery ahead of the Federal Reserve's highly anticipated policy statement, expected later in the day.

NZD/USD hit 0.8672 during late Asian trade, the session high; the pair subsequently consolidated at 0.8671, adding 0.15%.
 
The pair was likely to find support at 0.8606, the low of June 6 and resistance at 0.8710, the high of May 7.

AUD/USD almost unchanged ahead of FOMC statement 
The Australian dollar was almost unchanged against its U.S. counterpart on Wednesday, hovering near one-and-a-half week lows as investors remained cautious ahead of the Federal Reserve's policy statement due later in the day.

AUD/USD hit 0.9328 during late Asian trade, the pair's lowest since June 6; the pair subsequently consolidated at 0.9336, easing 0.01%.
 
The pair was likely to find support at 0.9258, the low of June 5 and resistance at 0.9417, the high of June 16.
 
Earlier Wednesday, the Conference Board said its leading index for Australia fell 0.1% in April, after a flat reading the previous month.
 
Meanwhile, the greenback remained supported after the Labor Department said Tuesday that U.S. consumer prices rose 0.4% from a month earlier, bringing the annual rate of inflation to 2.1%. It was the fastest monthly increase in inflation in more than a year, beating forecasts of 0.2%.

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