The index of USD (DXY) slipped around the level of 92.45 in the Asian session on Friday. That was still happening although it formed the candle bullish with the sideways bias. 

The situation was happened in a weekly frame. The world's major foreign exchange reserve currency is still grappling with uncertainty surrounding when the Fed will announce tapering.

The US dollar briefly touched a month-long record low after the release of non-farm payroll data last week. Some people feared that the disappointing U.S. labor data has an effect. 

The example is if that could be a reason for the Federal Reserve to delay tapering. But Fed officials have recently been cautious about the intention to announce a tapering in the near future.

Tapering will be not Announced in a Meeting

The president of the Atlanta Fed, Raphael Bostic, told the Wall Street Journal that the the organization would not announce the tapering at its September 21-22 meeting. 

However, he added that the members still think that sometime in thi year may be the right time to announce that. Furthermore, James Bullard also gives the similar opinion. 

The brief overview is that tapering will be started this year. Then, it might be ended sometimes at the first quarter period this year. So far, that is the biggest possibility. 

Bullard dismissed concerns about the America's labor market recovery. He said that the labor market could be "very strong" as it enters next year, if the pandemic situation continues to improve.

The Other Supports from the Leaders

In the different event, Robert Dallas as the Fed president for the Dallas area was also giving his support. It is especially for the tapering announcement which will be started on October. 

There is a requirement where the economic outlook must be not changed fundamentally. John Williams as the president of the New York area said to a virtual forum. 

He felt that the inflation requirement has been completed. He wants to see the further recovery in the employment market, but there is one thing to note due to this situation. 

If the economy situation is getting better in line with his anticipation, that can become a right time to start reducing the asset purchase speed for this year. 

The Impacts on Greenback 

The fed officials' discourse helped the greenback blow up the side effects of the non-farm payroll release since the beginning of the week. That chance may be taken in the future. 

However, the lack of clarity on tapering time will probably make the American dollar likely to consolidate. It is especially in a limited range until the next two weeks of policy meetings.

Meanwhile, the Australian dollar increased by 0.4% to the level around 0.7398 to the USD yesterday morning. Before, the Aussie was hit by the dovish announcement from the Central Bank. 

However, now it is lifted by the global risk sentiment recovery. Joe Biden and Xie Jinping (President of China) discussed by phone on Thursday night. It was their first contact in 7 months. 

The Market Responds due to that Communication

Both of those leaders agreed to create a regular communication again and for sure that brings some effects. Responding to the news, the renminbi scored its fastest gain since June. 

The USD/CNY and USD/CNH currency pairs continued to be confined within a multi-year low below the 6.5000 threshold. Other risk-sensitive currencies also picked up the Profit. 

Those currencies are like the New Zealand and Australian Dollar. The analysts welcomed the news happily. However, the bullish pressure on the yuan may be difficult to maintain. 

It is because the Fed's tapering discourse supports the appreciation of the USD, while china's tightening policy often causes the market upheaval. Market sentiment regarding U.S.-China relations could also deteriorate again.