RBNZ Wheeler: More Substantial NZD Depreciation Is Required
RBNZ Wheeler: Sees several risks around inflation outlook
Asia stocks up as China steadies, wary of Fed – RTRS
Emerging currencies feel pain of global stress – FT
China stems equity rout with state buyers – FT
A quiet APAC session ahead of the FOMC. Asian equity markets are mixed, but the Shanghai Composite was quite stable today. In FX, NZD was the best performing currency amongst the majors, while the Aussie Dollar fell to 0.7317 and is down 0.20 % on the day.
The focus is on the Fed today. The FOMC meeting concludes in the afternoon and it will release the statement at 19:00 BST. There is no scheduled press conference and there will be no forecast updates. Almost all bank analysts expect the Fed to leave rates unchanged. They also see any large changes in the statement as unlikely, especially in a meeting without new forecasts and press conference. Given how oversold the commodity currencies are, there is a decent chance of a squeeze in pairs like AUD/USD, NZD/USD and USD/CAD. On the other side, should the FOMC deliver any significant hawkish surprise, the USD would rally and short EUR/USD, long USD/CHF would be the best trades for that scenario.
07:00 BST – German Consumer climate
08:00 BST – Spanish Retail Sales
09:00 BST – Norwegian Unemployment Rate
15:00 BST – US Pending Home Sales
19:00 BST – FOMC Statement
19:00 BST – Federal Reserve Interest Rate Decision