Greenback Corrects Recent Appreciation, Aussie Tops G10 Pile

The greenback corrects its recent advance ahead of Fed rate decision, with BBDXY moving away from fresh cycle highs printed on Tuesday. All major currencies outperform the U.S. dollar as we type.

• The Aussie is the main gainer in G10 FX space, with onshore yield momentum lending support to the Antipodean currency, allowing it to shrug off dismal domestic consumer confidence data, with two indices approaching recessionary territory.
• Greenback sales have sent USD/JPY lower, with the rate briefly probing the water below the Y135.00 mark. Its 1-month risk reversal has shown continued strengthening in bearish bias among option traders, as the market calls the BoJ's ultra-dovish resolve into question.
• The FOMC's monetary policy announcement provides the obvious focal point today. Swaps & futures markets fully price a 75bp rate hike come the end of the meeting, following steep addition of hawkish bets early this week.
• Notable data releases include China's economic activity indicators, U.S. retail sales & Empire M'fing, EZ industrial output & French CPI.
• The central bank speaker slate is tightly packed with ECB members, but the press conference with Fed Chair Powell will most likely steal the show.