Greenback On The Defensive As Asia Reacts To FOMC, BBDXY Hovers Above Mid-Feb Low

Asia-Pac reaction to Wednesday’s FOMC sees regional focus fall on the dovish elements of the post-meeting statement and Chair Powell’s communique, leaving the broader BBDXY hovering just above its mid-February base (2-Year U.S. Tsy yields are through their post-FOMC lows from Wednesday, while year-end Fed-dated OIS pricing has breached its post-FOMC base).

• EUR/USD has so far printed a session high of $1.0906, within touching distance of yesterday’s $1.0912 peak. A break there would expose key resistance in the form of the Feb 2 high ($1.1033).
• USD/JPY moves to the lowest level observed since early February, showing as low as Y130.42 thus far. The current technical downtrend in USD/JPY remains intact. A break of Y130.00 would open the way to the 76.4% retracement of the Jan 16 to Mar 8 rally (Y129.75)
• GBP/USD sits a little shy of its post-FOMC high ($1.2335), with best levels of $1.2325 registered thus far. A break of the post-FOMC high would switch bullish focus to the Feb 2 high ($1.2401), which protects key medium-term resistance at the 23 Jan high ($1.2448).
• In Asia FX USD/KRW is hovering just above its 50-DMA, while USD/CNH is through its own 50-DMA.