Bell FX: The Australian Dollar is steady this morning after global markets have, in the main, absorbed the Fed's announcement of tapering the previous night

Bell FX: The Australian Dollar is steady this morning after global markets have, in the main, absorbed the Fed's announcement of tapering the previous night. This reflects that the move was pretty much expected, the size of the taper was modest and the forward guidance was emphasised, suggesting rates will remain low for a long time after the bond buying program ceases. Chairman Bernanke's emphasis that they want to see inflation closer to target also helped. In currency markets, the USD maintained its firm tone and the AUD continued to trade comfortably under USD 0.8900. Whilst the AUD took a breather after recent declines, the NZD and KRW showed more weakness. These moves are particularly interesting, not least because the NZD has been the strongest commodity currency and the KRW the strongest Asian currency over recent months. Today's Forecast Range USD: 0.8825 - 0.8885