The US dollar fell slightly amid fears that the US government might shut down to dampen optimism about progress in tax adjustments as the Senate approaches the vote.
Government funding is due to end on Friday, prompting the government to shut down unless legislators reach a budget deal. The US dollar may not see a significant move until the release of nonfarm employment data on Friday or perhaps until the Fed meeting.
US private employment data is due to release today and is expected to add 185,000 jobs in November, after adding 235,000 jobs in October.
The dollar index fell during the day after failing to exceed the resistance area at 93.33/44 and with stability below it, the dollar is likely to move towards the support level at 92.56.
The Australian dollar erased yesterday's gains after slower-than-expected growth. The Australian economy grew by 0.6% in the third quarter of 2017 and 2.8% on a yearly basis, driven by a weak increase in consumer spending, which represents the largest proportion of the economy.
Uncertainty continues to dominate Brexit negotiations, prompting the pound to continue its slide to its lowest level since November 29 at 1.3360 against the US dollar.
The Bank of Canada decision is due today and interest rates are expected to remain unchanged at 1% for the second consecutive meeting after the bank raised it twice this year. The bank has expressed concern over the economic slowdown during the last meeting. Will it continue to be concerned at today's meeting?
