Dollar Steady Before Fed Call, Aussie Dips on CPI

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April 29, 2026, sees the dollar steady as global currency markets brace for a pivotal Federal Reserve decision, while softer Australian inflation data weighs on the Aussie.

Dollar Holds Ground as Fed Decision Nears—Calm Before the Storm?

The dollar’s steady trend dominated Asian trading, with the greenback clinging to recent gains ahead of the Federal Reserve’s policy outcome later in the day. Expectations remain firm that rates will stay unchanged, yet attention pivots to signals on inflation and future tightening.

Regional currencies drifted lower, reflecting fragile sentiment and muted activity during Japan’s holiday-thinned session. The yen softened slightly, hovering near the 160 mark against the dollar.

Aussie Slips as Inflation Misses the Mark

The Australian dollar weakened, with AUD/USD declining 0.25% after March inflation figures undershot forecasts. Despite the miss, price pressures remained elevated, largely driven by rising fuel costs.

Core inflation held above the central bank’s 2%-3% target, reinforcing expectations of further tightening. Analysts anticipate another 25 basis point increase in the upcoming meetings, signaling that policy tightening may persist.