Overnight the Fed have announced that their tapering of bond buying will continue, with another $10bn per month knocked off the plans. The Fed will now be buying just $25bn per month with the policy set to come to an end (as planned) in October. The announcement was no surprise to the markets.
In other news the US economy was shown to have grown more strongly than expected in the second quarter. Annualised GDP growth in Q2 came in at 4% while the decline in Q1 was revised from a fall of 2.9% to 2.1%. The dip in Q1 was clearly related to the shocking winter weather experienced in the US but the strength of the Q2 numbers show that the (slow) recovery in the US remains on track. For the first 6 months of the year the US economy has grown at about a 1% annualised pace.
The news from the US has seen the A$ trade slightly lower overnight at currently sits at US$0.933.