Moving On After FOMC

Familiar dynamics were in play in the early part of the Asia-Pac session, but started to peter out in the second half. Headline flow failed to provide any notable catalysts, while regional activity was limited by a market holiday in Japan. The latest speech from U.S. Pres Biden generated no tangible market reaction, as most details had been outlined/leaked earlier. The greenback continued its post-FOMC slide and the DXY printed two-month lows as a result, but trimmed the bulk of initial losses thereafter, even as the U.S. dollar remained among the worst G10 performers.

• USD/CNH went offered despite a marginally softer than expected PBOC fix. China's central bank set its USD/CNY mid-point at CNY6.4715, 8 pips above sell side estimates, but USD/CNH slipped through yesterday's low to its worst levels since the early days of March.
• The Antipodeans gave away their initial gains, which made NZD/USD fail to consolidate above broken resistance from Mar 18 high of $0.7269. Both AUD/USD & NZD/USD returned to respective opening levels.
• NOK remained resilient and topped the G10 pile, with SEK & GBP also holding up well.
• USD/CAD slipped to a fresh cycle low of C$1.2288, even though some suggested that C$1.2300 may have held some barrier options. The rate moved away from that trough as USD started chewing into its post-FOMC losses.
• The global data docket features U.S. GDP & initial jobless claims, German unemployment & flash CPI. Speeches are due from Fed's Quarles as well as ECB's de Guindos, Elderson, Weidmann & Holzmann.