It is all about the countdown to the FOMC meeting decision now
The dollar is holding steady on the new day after some weakness in overnight trading, possibly due to funding worries observed in the money market.
Things are calmer today but all eyes now will be on the Fed rate decision and how they will address the issue with repos (is there something roil happening in the money market?).
The aussie and kiwi are the notable laggards but their losses are relatively modest with AUD/USD seen in a 23 pips range but trading at the lower extreme just under 0.6850. It's still very much about the anticipation towards the Fed decision later today.
Other major currencies are a tad softer against the greenback but nothing suggestive of massive positioning flows before the main event.
Markets are more steady in general with equities and bonds still displaying cautious tones overall. All eyes are on the Fed now so expect a more slow-paced session ahead as market participants prepare for a more tricky FOMC meeting given the latest curve ball thrown by the money market this week.
