Greenback Holds Post-FOMC Decline

The greenback is holding its decline post-FOMC; NZD is top of the G10 pile so far, NZD/USD gaining 11 pips and hovering around yesterday's opening levels. New Zealand's ANZ Business Confidence hits the wires today.

• AUD/USD is hovering around neutral levels after recovering lost ground on Wednesday. The local COVID situation will continue to dominate domestic news flow. Australian Treasurer Frydenberg said earlier the fate of the economy for the rest of this year depends on how quickly NSW can curb Covid-19 case numbers and come out of lockdown.
• JPY is slightly stronger, USD/JPY down 6 pips. There will be continued focus on the local COVID situation after Japan recorded a record round of daily new cases on Wednesday (with expectations for a continued uptick). Local media outlets reported that officials are considering declaring a state of emergency in Kanagawa, Saitama and Chiba, the three prefectures neighbouring the capital.
• Offshore yuan is slightly weaker, but USD/CNH remains near the bottom of Wednesday's range after dropping throughout the day. Markets will watch for Chinese equity market performance to better assess risk sentiment today, Chinese stocks listed in the US rebounded yesterday, which bulls will hope is a sign the selloff has run its course.
• It is a thin economic docket in Asia today, markets will look ahead to German inflation data in the European session and advance US GDP data.