USD Grind Higher Continues As Fed Comes Into View

The USD has continued to edge higher through Asia Pac trade on Wednesday. We were last +0.10% firmer, with the BBDXY index up to 1267.1 This is fresh highs in the index back to Apr 19.

• Overall moves have been contained though, with much of the region out for labor day holidays. We also have the Fed outcome later.
• We started off with NZD on the back foot, which came after weaker Q1 employment data and a tick up in the unemployment rate. However, lows at 0.5875 saw support emerge, the pair last tracking close to 0.5885/90, little changed for the session.
• Selling interest in the AUD/NZD cross above 1.1000 (highs of 1.1019) helped NZD at the margins. The cross is back to 1.0985/90 this afternoon.
• AUD/USD is down 0.1% to 0.6467 after trading in a range of 0.6465-0.6485.
• The S&P e-mini is slightly lower. Oil prices have continued sinking with WTI down 1% to $81.12/bbl. Copper is 0.8% lower and iron ore around $115.50/t.
• US yields sit less than 1bp lower across the benchmarks, with Tsy futures off earlier highs.
• USD/JPY is a touch higher, last near 157.85/90, a steady grind up, but we haven't recaptured the 158.00 handle yet. USD/CHF has seen more upside, the pair above 0.9210, +0.20% firmer for the session.
• Later the Fed decision is announced (see MNI Fed Preview) and April ADP employment, ISM/PMI manufacturing and March JOLTS job openings print. UK April manufacturing PMI is released, while Europe ex UK is closed.