Forex News - Dollar edges up on Fed's tough talk, Aussie slides - guardian.co.uk(Forex Trading)

Helping give the dollar a broad boost, the Australian dollar tumbled nearly 1 percent after data showed the country's employment fell for the first time in 19 months. Any reassessment of how much the Fed could lift rates from 2 percent later in the year may drive the dollar lower, especially as the European Central Bank has made clear that a quarter-point rate increase to 4. Fed Chairman Ben Bernanke surprised investors last week by highlighting that a weaker dollar could feed inflation pressures, while several other officials have made clear their focus is now on containing inflation expectations. Market players are closely watching the performance of oil and looking ahead to Saturday's gathering of Group of Eight financial officials in Osaka, Japan, for more clues on whether the United States has changed its policy on the dollar. read more

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