The U.S. dollar index (DXY) hovers above yesterday's low of 102.46, stabilising after a rout caused by the FOMC's decision to raise interest rates by the expected 50bp and Chair Powell’s insistence that a 75bp rate hike is not an actively debated scenario.
- The Aussie dollar underperforms at the margin, even as NZD, NOK and CAD have edged higher amid firmer crude oil prices. AUD weakness coincides with a retreat in ACGB yields, with participants assessing the implications of the Fed's policy announcement for this week's hawkish tilt from the RBA.
- This week's central bank activity does not stop here. Monetary policy decisions are due from both the Bank of England and the Norges Bank, with ECB's Lane, Centeno & Holzmann and BoC's Schembri set to speak.
- Today's data highlights include China's Caixin Services PMI, Australian trade balance, German factory orders and U.S. weekly jobless claims.