The greenback strengthened against the majors, advancing by 0.45% versus the Canadian dollar and over 0.3% against the euro in the Tuesday session. The Japanese yen was the biggest gainer for the day, trading higher by 0.6% versus the dollar to 85.18. Crude oil settled lower by 1.5% to hold steady just above the $80-per barrel mark.

Garnering the lion's share of market attention was the FOMC monetary policy decision, in which the Fed left interest rates unchanged. In light of the pullback in economic activity in recent months, the FOMC acknowledged the pace of economic recovery is likely to be more modest in the near term than had been anticipated. The key highlight in the policy statement was the Fed's announcement to reinvest principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities. In doing so, the Fed effectively shifts toward a more easing stance and revealing heightened fears among Committee members for further deterioration in fundamentals.

The North American economic calendar for Wednesday will see June trade balance figures from the US and Canada. The US trade deficit is forecast to hold steady at $2.3 billion while Canada's trade deficit is estimated to improve to C$300 million in June versus a C$500 million deficit from May.

Traders will shift focus to a barrage of data slated for release from China in the session ahead. The calendar consists of July producer price index, consumer price index, retail sales and industrial production. The recent manufacturing reports out from China have suggested a pullback in growth, tempering the government's need to implement further measures to tap the brakes on an overheating economy. The July CPI reading is anticipated higher at 3.3% versus 2.9% from the previous year while the PPI is estimated to slide to 6.0% from 6.4% previously. Retail sales and industrial production are both forecast to be little changed from the previous reading.