The waiting game -Markets sit well within.....>

FOREX: The waiting game

-Markets sit well within recent ranges as traders sit on the sidelines ahead of

the key FOMC rate decision due at 1900BST/1400ET and Powell's presser 30 minutes

later. JPY modestly outperforms as markets appear to be slightly erring on the

side of caution, while AUD sits on top. All surveyed analysts see easing at

today's meeting, with the majority eyeing a 25bps cut and a (small) minority

seeing 50bps. Either way, the communication the Fed provides throughout the

press conference will be critical to discerning whether any action was merely an

insurance cut or the beginning of an easing cycle.

-AUD/USD could snap eight consecutive sessions of losses if it closes at current

levels. Q2 CPI beat expectations: 0.6% vs. Exp. 0.5%, helping fuel AUD/USD gains

off new cycle lows of $0.6863. Bulls now need to cement a close above the $0.69

level to stage any further recovery. Elsewhere, NOK extends recent weakness,

hitting the lowest levels against the EUR since late June.

-Outside of the FOMC decision, Italian and Canadian GDP, US ADP employment

change and MNI Chicago PMI are on the docket.