Greenback Shows Pre-Fed Weakness, Kiwi Slips On Domestic Data Miss

The gauge of broader U.S. dollar strength (DXY) ground lower ahead of today's monetary policy announcement from the Fed and press conference with is Chair Jerome Powell. Headlines surrounding Russia's war on Ukraine failed to provide much to move the markets, although President Zelensky tipped hat to peace talks becoming more "realistic."

• The kiwi dollar retreated after New Zealand's BoP current account data showed that quarterly deficit narrowed less than expected in the three months through December. Annual deficit widened to 5.8% of GDP from 4.6% in Q3, topping expectations and reaching highest levels since 2009. Worth noting that the data came out on the eve of the release of New Zealand's Q4 GDP report.
• Offshore yuan caught a mild bid after fluctuating on the back of today's PBOC fix. The People's Bank set the USD/CNY mid-point just 11 pips above sell-side estimate, which stood in contrast to wider discrepancies seen Monday (150 pips) and Tuesday (129 pips).
• The monetary policy decision of U.S. FOMC will steal the limelight today, with policymakers expected to deliver a 25bp rate hike. Elsewhere, comments from Riksbank's Ingves & Ohlsson, Canadian CPI & U.S. retail sales may provide some interest.