* AUD, NZD and euro inch higher as traders fade dollar
bounce
* Fed Powell testimony before Congress begins at 1500 GMT
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Tom Westbrook
SYDNEY, Dec 1 (Reuters) - The dollar was under pressure on
Tuesday, after closing out its worst month since July with a
little bounce and as investors reckon on even more U.S. monetary
easing.
The risk-sensitive Australian and New Zealand dollars clawed
back some of Monday's losses, each rising roughly 0.2% early in
the Asia session, although both remained just below milestone
peaks hit a day ago. AUD/
The euro EUR= rose 0.1% but kept shy of $1.20, while
sterling held on to gains made against the dollar as traders
cling to hopes for a Brexit trade deal before the year's end.
Investors are heavily short dollars as optimism about
promising vaccine trials drives buying of riskier currencies and
higher yielding assets outside the United States. 0#NETUSDFX=
Even worries about rising coronavirus cases have not offered
too much support to the greenback, as speculation grows that the
Federal Reserve might act to support the economy through a tough
winter before vaccinations can turn the tide on the pandemic.
"There's a general view that there'll be something in the
December meeting...given there's no real fiscal development in
the last few months," said BNZ senior markets strategist Jason
Wong.
The Fed meets to set policy on Dec. 15 and 16, though before
then - on Tuesday and Wednesday - Fed Chair Jerome Powell will
appear before Congress and his remarks will be closely watched
for any clues as to the next moves.
The policymakers gather as authorities mull approving two
effective vaccines, developed by Pfizer PFE.N and Moderna
MRNA.O for distribution, but as surging virus cases put the
brakes on the U.S. economic recovery. Dallas Fed President Robert Kaplan said on Monday that
difficult months lie ahead. "We're bracing ourselves here," he
said, adding that the central bank is open-minded about shifting
or even expanding its bond buying programme.
"We are going to have to figure out whether it's in the
December meeting or a future meeting," he said. Against a basket of currencies the dollar =USD was steady
at 91.942. The safe-haven Japanese yen JPY= held its ground at
104.33 per dollar.
Elsewhere in Asia, the South Korean won KRW= , which is up
more than 7% on the dollar since September, recouped half of a
0.4% drop made on Monday. The Chinese yuan CNH= was firm in
offshore trade following solid economic data on Monday. CNY/
The Reserve Bank of Australia announces the outcome of its
final policy meeting for the year at 0330 GMT, though traders
expect no changes and few surprises. European inflation figures
and U.S. manufacturing data is due later on Tuesday.
Britain and the European Union also warned each other on
Monday that time was running out to reach a Brexit trade deal,
though investors remain hopeful and have kept the pound GBP=
at $1.3337 and 89.48 pence per euro EURGBP= . Talks between EU chief negotiator Michel Barnier and British
chief negotiator David Frost are ongoing and the EU team are
expected to stay in London for two or three more days. GBP/
========================================================
Currency bid prices at 11:28AM in Sydney (0028 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1941 $1.1923 +0.15% +6.51% +1.1942 +1.1927
Dollar/Yen JPY=D3 104.3100 104.3350 +0.00% -3.94% +104.3650 +0.0000
Euro/Yen EURJPY= 124.55 124.39 +0.13% +2.13% +124.6000 +124.4100
Dollar/Swiss CHF=EBS 0.9079 0.9092 -0.13% -6.16% +0.9087 +0.9080
Sterling/Dollar GBP=D3 1.3339 1.3325 +0.11% +0.58% +1.3340 +1.3328
Dollar/Canadian CAD=D3 1.2982 1.3008 -0.19% -0.06% +1.3008 +1.2983
Aussie/Dollar AUD=D3 0.7358 0.7345 +0.18% +4.87% +0.7361 +0.7344
NZ NZD=D3 0.7025 0.7010 +0.21% +4.40% +0.7025 +0.7011
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX