Forex Today: Kiwi shrugs-off better trade, UK retail sales, Fed in focus

Forex today witnessed tight trading ranges, as a cautious tone gripped markets heading into the key FOMC policy decision. Markets sought safety in the traditional safe-haven assets such as gold, Yen and Swiss franc, while dumped the US dollar broadly, in the wake of weaker Treasury yields. Meanwhile, the Japanese currency also gained against the greenback on the back of slightly upbeat Japanese trade figures, which showed that the exports surged at the fastest pace in nearly 4 years. At the same time, the Kiwi was little impressed by better NZ trade data that highlighted narrowing trade deficit, while the Aussie defended minor bid, having ignored comments from the RBA Assistant Governor (Economic) Luci Ellis.

Main topics in Asia

NZ: Q2 current account firmer than expected - Westpac

New Zealand’s current account deficit narrowed to 2.8% of GDP in the year to June, following a revised deficit of 2.9% last quarter, notes Satish Ranchhod, Senior Economist at Westpac.           

Japanese exports surge at fastest in nearly 4 years

Japanese exports surged at the fastest pace in nearly 4 years in August on the back of booming shipments of cars and electronics.

Japan PM Abe to delay the timing of achieving budget balance target - Reuters

Sources told Reuters that Japanese Prime Minister Shinzo Abe is set to delay the timing for balancing a primary budget from the current fiscal 2020 to later in the decade.

RBA’s Ellis: Will not speculate on domestic monetary policy

More comments flowing in from the Reserve Bank of Australia's (RBA) Assistant Governor (Economic) Luci Ellis, as she responds to the Q & A session at the Australian Business Economists (ABE) Lunchtime Briefing.

Japan PM Abe to delay the timing of achieving budget balance target - Reuters

Sources told Reuters that Japanese Prime Minister Shinzo Abe is set to delay the timing for balancing a primary budget from the current fiscal 2020 to later in the decade.

Key Focus ahead

We have the German PPI data ahead of the European opening bells, while the UK retail sales will hog the limelight in an otherwise data-light EUR calendar. The session ahead remains packed with a lot of macro events, starting-off with the SNB Quarterly Bulletin, followed by the US existing home sales and EIA crude oil inventories report. However, the main risk event for today remains the FOMC monetary policy outcome and economic projections, which will set the tone for markets in the coming months.

GBP/USD - Will UK retail sales beat estimates and boost Pound?

Ahead of the FOMC rate decision, the GBP/USD pair could take cues from the UK retail sales due at 08:30GMT.

EUR/USD retakes 1.20 handle, all eyes on the Fed

The EUR/USD rose to a nine-day high of 1.2020 in Asia as the greenback weakened ahead of a US Federal Reserve meeting where policymakers are expected to decide on shrinking the central bank's USD 4.2 trillion in bond holdings.

FOMC Preview: Focus on outlook for the federal funds rate - Goldman Sachs

Goldman Sachs Analysts out with their preview on what to expect from today’s FOMC monetary policy decision due at 18.00 GMT.

Preview of existing home sales for the US session - Nomura

Analysts at Nomura offered a preview of the Existing home sales from the US session tonight.