Asian equity markets dictated price action...>

DOLLAR: Asian equity markets dictated price action overnight as the dollar

marginally underperformed across the board. USDJPY cleared the key Y112.20/25

double-bottom support area, triggered stops on the move to Y112.19, before a

recovery in the Nikkei squeezed to Y112.40 (100-dma). This level will be key at

the close today, below targets option-related support at Y112.00, above would

see bulls look to challenge the Y112.80-90 resistance area. The DXY failed to

reclaim the 97 handle and keeps the recent downtrend intact. Bears initially

need to break yesterday's low at 96.69, before testing the 96.00 level(96.04 -

Nov 20 low), below here opens the 100-dma & 50% retracement of 93.81-97.71 at

95.92/76. UST yields also added weight with the 10y printing 2.7978%, its lowest

levels since May 29. Next support is seen at 2.7838% from the 38.2% fibo of

2.0144-3.2594, a break opens long-term up trendline support off the July 2016

low at 2.7684%. Gold touched 5-month highs of $1251.41 targeting a break of the

200-dma at $1253.07. Main focus today on the FOMC MonPol decision where a dovish

hike is widely expected.