USD was slightly down on Wednesday morning in Asia but is still hovering around its annual peaks against EUR and JPY. Later in the day, the Fed will hand over its policy decision and is widely expected to taper the asset purchases. Whether or not to hike the interest rates remains unclear. DXY Index is currently trading at 94.07, down about 0.02%.
China’s services sector activity expanded at a faster pace in October. Demand remains strong but supply is unstable. Inflation remains on the rise. Caixin PMI landed at 53.8, higher than the prior release at 53.4. The services sector is, unlike the manufacturing sector, more vulnerable to COVID outbreaks. The “Zero Case” strategy pursued by the country has hit heavily on leisure and tourism businesses. Cities with cases, or those with concerns about the virus’ spread, have closed entertainment venues, restricted tourism, and delayed cultural events.