The United States dollar has been moving weakly on Thursday (16/12) in the Asian market. This is because the US Federal Reserve has its monetary policy on a hawkish Nan view. The US Dollar Index, which has been measuring the greenback against a basket of other currencies, was down 0.12% at 96.365 as of 11:03 am EST.
Looks like USD/JPY has a slight 0.10% gain at 114.14
The AUD/USD pair was down 0.16% at 0.7156 after employment data at the Australian Bureau of Statistics showed a record 366,100, an employment change of 128,300, and had an unemployment rate of 4.6% in November.
The Fed is accelerating its asset reduction program to $30 billion a month, the central bank has said since its policy decision meeting on Wednesday. In that incident, the central bank still set the interest rate unchanged from the previous 0.25% but will experience an increase in interest rates by several points in 2022. This policy is to overcome inflation.
Fed chairman Jerome Powell said, "The economy is no longer about increasing the amount of policy support". This is taking into account the near depression situation at the start of Covid-19 in 2020 by raising prices and wages at this time, of course also increasing rapidly in the job market. Currently, investors are still waiting for policy decisions from the European Central Bank (ECB) and the Bank of England (BOE) today, for the Bank of Japan to be announced on Friday.
The ECB will halt its pandemic emergency buying program, but investors are still predicting that the central bank will not increase interest rates just yet for the time being. The BOE itself is trying to overcome inflation and overcome the problem of the Omicron variant which spreads very quickly. British data on Wednesday showed the consumer price index grew by 5.1% annually in November, its highest level in a decade.