The Federal Reserve convenes this morning for a two-day meeting but the die has already been cast by most markets. No rate hike is expected at this time and the decision has already been factored in.
Key central bank decisions from the U.S. Federal Reserve, the Bank of Japan (BOJ) and the Reserve Bank of New Zealand are scheduled this week and analysts say markets are on hold in anticipation of the meetings’ outcome.
In Japan, the Nikkei 225 initially advanced 0.25 percent before giving up gains to trade down 0.53 percent, while across the Korean Strait, the Kospi was down 0.13 percent.
In Hong Kong, the Hang Seng index was flat, while Taiwan's Taiex dropped 0.06 percent and Chinese mainland markets were higher, with the Shanghai composite up 0.21 percent and the Shenzhen composite adding 0.46 percent.
Australia’s core inflation slowed and the consumer price index unexpectedly fell as a rebounding currency cut import prices, sending the county’s benchmark ASX 200 up 1.07 percent.
Aussie, US Dollar Down
The Australian dollar initially traded around $0.7746 in early trade but then fell 1.11 percent to $0.7661 as of 10:37 a.m. HK/SIN, after Australia's consumer prices unexpectedly fell, renewing talks of further easing from the Reserve Bank of Australia.
In other currency news, the Japanese yen traded at 111.13 to the dollar, compared with the 110 level it touched Tuesday afternoon local time and the near-112 level it hit late last week.
The dollar retreated against a basket of currencies on Wednesday, with the dollar index down 0.15 percent at 94.430, compared with its last close of 94.573.