Forex today: traders didn't want to be too long on USD ahead of FOMC

Forex today was mixed, with higher beta FX performing well, the greenback ending lower, selling off late, and US yields out of synch with the US dollar, with the US 10-year benchmark ending higher, +0.63% while the DXY ended -0.26%.

All eyes are on the FOMC tomorrow, but that didn't prevent markets from moving in the FX space at least. The Yen was good two-way business between 111.20 and 111.88, trading through key technical levels in a choppy fashion. Sterling was just as choppy between 1.3468 the low and 1.3552 the highs while the cross's bid from 0.8842 met highs of 0.8899 and capped there, offered back down to 0.8866. EUR/USD met the 1.20 handle for a second attempt in the US session after previous bids overnight, making for a range of 1.1950-1.2006 double top - fuelled by solid macro theme and ZEW, energized initially by yen supply that took EUR/JPY to 21-month highs overnight. 

Meanwhile, commodities were robust, WTI still traded within a $1.00 range around the $50 handle. Gold was holding on by the skin of its teeth, recovering $5 to $1,311.55 the high before closing at $1,310. Dec copper ended +0.20% higher on the session. AUD +0.60 at 0.8007 and Kiwi, +0.79% at 0.7314 (positive GDT price index) - roll on the FOMC!

Key events in Asia

Analysts at Westpac offered their outlooks for today's risk events in Asia:

"NZ: the Q2 current account balance is expected to remain at -3.1% of GDP, with exports remaining firm.

Australia: Aug Westpac-MI Leading Index was last at -0.32%, having swung from well above trend to back below trend in recent months. RBA Assistant Governor Ellis speaks at an ABE briefing, Sydney 1:05 pm."

Key notes from US session

• FOMC Preview: there's nothing the Fed can do to save the greenback
• New Zealand GDT Price Index rose from previous 0.3% to 0.9%
• US Pres. Trump: Iran deal was one of the worst and one-sided transactions
• Atlanta Fed: GDPNow model forecast for real GDP growth in Q3 steady at 2.2%
• US: Homebuilding looked solid prior to the storms - Wells Fargo
• US: Focus on Sep FOMC meeting - Westpac
• Wall Street records modest gains as FOMC meeting gets underway
• Gold remains stuck in tight range above $1300
• AUD/USD edges higher above 0.80 post-US data