MSN: GLOBAL MARKETS-Dollar steady, stocks waver before Fed meet
* Dollar steady, Asia stocks waver ahead of Fed meeting
* Asia currencies firm as Dubai bailout helps risk appetite
* Oil stabilises after nine-day slide (Repeating to more subscribers)
By Susan Fenton
HONG KONG, Dec 15 (Reuters) - The dollar steadied on Tuesday and Asian stocks wavered, despite improving appetite for riskier assets, as investors turned cautious ahead of a meeting of the U.S. Federal Reserve.
European shares were set to open slightly higher, according to financial spreadbetters, while U.S. equity futures were up 0.5 percent ahead of a slew of economic data later in the day.
The dollar <.DXY> was virtually unchanged against a basket of major currencies at 76.412 as markets braced for the two-day Fed meeting starting later on Tuesday.
Investors expect a pledge from the Fed to maintain very low interested rates for an extended period, but they will be on guard for any new indications about monetary policy, especially after recent upbeat sales and jobs data prompted some speculation of a rate rise in mid-2010. [ID:nFEDAHEAD]
"The market is now just waiting for more trading clues. The Fed meeting and its statement as well as U.S. economic data and ensuing reactions in the currency market are a main focus," said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC in Japan.
The dollar found some support against the euro amid persistent concerns about sovereign risk in Europe after Greece was downgraded last week, prompting the Greek government to announce measures on Monday to rein in debt. [ID:nLDE5BD2DA]
The dollar was quoted at 1.4641 to the euro , up from 1.4650 in late New York trade.
"Though the dollar index has broken the 55-day moving average, now around 75.71, and has had more good than bad sessions of late, it continues to face headwinds," said David Watt, senior currency strategist at RBC Capital Markets in Australia.
"If the Fed highlights exit strategies, watch the topside in the dollar index. If they highlight the 'extended period' of low rates, watch the 55-day moving average."
Abu Dhabi's surprise decision on Monday to provide Dubai with $10 billion to help its neighbour avoid a debt default has boosted risk appetite among investors globally. Dubai's stock market was up nearly 3 percent in early trade, extending Monday's 10 percent rally. [.MIDEAST]
Improving risk appetite helped Asian currencies such as the Taiwan dollar but not the Australian dollar , which slipped as minutes from this month's central bank meeting showed the decision to raise interest rates was a lot closer than markets had thought. [ID:nSGE5BE078]
SHARES SUBDUED
With attention shifting to the Fed meeting, Asian shares were subdued after rebounding on Monday on the Dubai news.
