Risk-On Disposition Lingers Post-FOMC

The Asia-Pacific jumped on the risk-on bandwagon, set off by the Fed's declaration of patience on raising interest rates. The yen went offered as Japanese markets reopened after a public holiday, with demand for safe haven currencies reduced by post-FOMC impetus.

• AUD led high-beta FX higher, as the space drew support from risk-on flows. AUD/NZD moved away from a fresh five-week low printed yesterday.
• In light of the observance of a national holiday in Singapore, liquidity in the region may have been thinner today.
• The yuan defied PBOC signalling and traded on a marginally firmer footing, despite another softer than anticipated fixing of the central USD/CNY mid-point.
• Central bank activity picks up today, with the BoE and Norges Bank set to deliver monetary policy decisions. This will be complemented by speeches from BoE's Cunliffe, Norges Bank's Bach & several ECB members including Pres Lagarde.
• Data highlights include U.S. trade balance & weekly jobless claims, German factory orders, Canadian trade balance & a suite of Services PMIs from across the globe.