USD Steady As Market Awaits FOMC

Overall FX trends have been relatively muted in Asia Pac trade today. The BBDXY currently sits just above 1232, with modest dip buying evident today, but ranges have been tight. In the cross asset space, US yields are tracking lower, but are above session lows (2yr last off nearly 2bps). This weighed on USD sentiment earlier but there was little follow through. US equity futures sit down a touch.

• USD/JPY dips sub 140.00 have been supported, the pair last 140.05/10, slightly down on NY closing levels. Onshore Japan media reported that PM Kishida may dissolve the lower house if the opposition submits a no confidence motion this Friday.
• EUR/USD is under 1.0790, down slightly for the session, but well within recent ranges.
• NZD/USD sits slightly higher, earlier better than expected Q1 current account data helping the pair at the margins. We were last 0.6155/60.
• AUD/USD has been range bound, last just above 0.6770.
• Later on, the main focus will be on the Fed decision in the US. Prior to that we get UK monthly GDP for Apr. EU IP also prints.