The dollar was firmer throughout a lackluster trading session with no news or data announcements to give the markets direction. It was evident that major currency pairs were consolidating in tight ranges ahead of tomorrow’s highly anticipated FOMC announcement. USD/JPY extended its bounce from 8-month lows having gone from around 85.30 earlier in the session to make highs around 85.90, EUR/USD weakened to roughly 1.3220 after highs just above 1.3300 and the British pound gave up ground to the greenback declining below 1.5900 to about 1.5895 after falling short of the 1.60 level.
JPY-crosses drifted higher following advances in U.S. equities. The Dow Jones Industrial Average finished up 0.42% and the S&P 500 gained 0.55%. Commodities traded mixed with gold and silver sliding (-0.34% and -0.69% respectively) while oil gained about 1.08%. U.S. 10-year yields were essentially flat on the day.
On the calendar for the Asia/Pacific session New Zealand July card spending, and Australian NAB business confidence for July. The Bank of Japan will announce interest rates as well as 2Q housing loans and preliminary July machine tool orders and China is set to release its July trade balance data.