Traders gird for ‘dangerous’ 48 hours in markets

The next 48 hours are shaping up to be the biggest market event of the year, as nervous investors and traders brace for Australia’s key quarterly inflation data and the outcome of the US Federal Reserve’s policy meeting.

The Australian dollar fell overnight to trade near its lowest level in three months at US65.40¢ ahead of the release of the consumer price index for the June quarter – a number considered pivotal in deciding whether the Reserve Bank will raise interest rates next week.