Markets remain cautious ahead of tonight's FOMC decision, with central bank signals likely to set the tone for the next major moves. The Australian Dollar has regained momentum after stronger-than-expected CPI data this morning, while the New Zealand Dollar has come under heavy pressure after the Reserve Bank of New Zealand left interest rates unchanged. The Fed's decision could determine whether NZD/USD extends its decline or stages a recovery if the US Dollar weakens. Meanwhile, the Dollar Index (DXY) remains at a technical crossroads: the longer-term trend could still point to further downside, but a break above 102.50 would potentially open the door to renewed bullish momentum.

Market talk

Commodities are showing signs of stabilisation, with gold and silver recovering after recent weakness. Gold is leading the rebound, suggesting stronger buying interest compared with silver. Oil also remains relatively stable and could extend its gains if the broader positive trend holds. In contrast, cryptocurrencies continue to struggle. Bitcoin is holding up comparatively well, but altcoins remain under pressure, reflecting continued caution across the digital asset market.

The Japanese Yen is trading mixed but is generally weaker. USDJPY is moving higher toward resistance, while EUR/JPY and GBP/JPY continue to show weakness, highlighting diverging price action across Yen pairs. The Fed decision remains the central event for markets, with the tone of the statement and the outlook for future policy likely to matter as much as the rate decision itself. A more hawkish message could support the Dollar and keep pressure on currencies such as the Kiwi, while a dovish outcome could revive downside momentum in the DXY and provide room for risk-sensitive currencies to recover.

Tendencies in the markets

Equities positive, USD volatile, crypto weak, oil positive, metals positive, JPY stronger.

Author

Frank Walbaum

AUD/USD jumps to 0.7050, fresh one-month top after hot Australian CPI

AUD/USD attracts buyers for the second straight day on Wednesday, rising to a fresh high since September 23 during the Asian session. A hot Australian CPI print reaffirmed bets for an imminent RBA rate hike in November and boosted the Australian Dollar. Meanwhile, the US Dollar pauses after a three-day rally to a near two-week high ahead of the crucial FOMC rate decision, lending additional support to the currency pair.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold sticks to intraday losses below $4,050 as USD retains bullish bias ahead of FOMC

Gold remains offered below $4,050 during Wednesday's early European session, snapping a two-day winning streak ahead of the key central bank event. The US Federal Reserve is scheduled to announce its policy decision later today and is widely expected to keep rates unchanged. Meanwhile, the focus will remain on the accompanying monetary policy statement and Fed Chair Kevin Warsh's comments during the post-meeting press conference.

Zcash's bullish momentum mounts on steady ETF inflows, retail confidence

Zcash extends steady recovery above $1,300 on Wednesday, approaching a key resistance near $1,373. Grayscale’s ZEC-focused Exchange-Traded Fund sees persistent buying pressure, with six straight days of inflows, including more than $3 million on Tuesday.

BoC expected to raise interest rates to 2.50%

The Bank of Canada is expected to raise its benchmark interest rate by 25 basis points to 2.50% on Wednesday, as persistent inflation concerns put pressure on policymakers to tighten monetary policy despite growing signs of economic weakness. According to a Reuters poll, 19 of 34 economists anticipate a rate hike, which would mark the central bank's first increase since July 2023.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.