FX trade was relatively confined in...........>

FOREX: FX trade was relatively confined in Asia-Pacific hours as participants

await the latest FOMC MonPol decision, with a hike baked into market pricing.

- USDJPY garnered an early bid as US President Trump reeled off a batch of

upbeat tweets re: North Korea, which allowed the pair to tick higher after it

managed to close above its 200-DMA for the first time since mid-May. The pair

last deals at 110.65, just shy of hourly support from May 22 (110.72).

- AUDUSD had stuck to a tight range until RBA Governor Lowe took to the wires.

Lowe reiterated that next move in the cash rate is likely to be higher, but

conceded that even though Q1 GDP was stronger than the RBA expected, the move

will not come for some time. He also highlighted increased tail risks owing to

global developments. Ultimately AUDUSD eased to session lows just ahead of the

June 04 low (0.7552), before paring some of its losses.

- The USD was marginally stronger elsewhere. EURUSD traders focus on some EUR

3.8bln worth of FX option expiries between 1.1700-1.1725 at today's 10AM NY cut.

- The FOMC MonPol decision, UK CPI & US PPI headline on Wednesday.