[MARKET ANALYSIS] DXY pauses after recent gains and heading into the FOMC, while NZD slumps on RBNZ's surprise pause

DXY: Flat Pauses overnight after gaining yesterday, albeit with a mixed performance vs. G10 peers as participants await a deluge of upcoming key events, including the FOMC decision and Fed Chair Warsh's press conference later today, while there were several recent data releases, in which durable goods, consumer confidence, and new home sales all topped forecasts, although Richmond Fed marginally disappointed. EUR/USD: Flat Remains lacklustre after steadily declining throughout the past two days, with participants also awaiting the ECB later in the week, while ING thinks EUR/USD probably retains some downside risks at the current levels as the dominating USD leg may find a bit more support ahead of the FOMC. GBP/USD: Flat Lingers at the prior day's trough and tests the 1.3300 level to the downside, with the attention in the UK turning to Chancellor Healey, who will deliver his first Budget today. USD/JPY: Flat Take a breather after briefly reclaiming the 158.00 handle amid recent dollar strength and the mostly positive risk appetite, while markets await the approaching central bank announcements. Antipodeans: AUD/USD +0.2% / NZD/USD -1.2% Mixed trade seen with AUD/USD briefly supported following the latest CPI data and hawkish RBA comments, while NZD/USD slumped following the surprise decision by the RBNZ to keep rates unchanged at 2.75% in a narrow 4-3 vote split.