Aussie is mildly higher in Asian session as RBA minutes suggested that the central bank is in no rush to cut interest rate again. RBA noted that the economy grew at "around estimates of potential growth over the first half of 2016, despite further large falls in business investment." Meanwhile, "interest-sensitive sectors of the economy were being supported by accommodative monetary policy." And, the current monetary policy stance "was consistent with sustainable growth in the Australian economy and achieving the inflation target over time." Also from Australia, House price index rose 2.0% qoq in Q2, below expectation of 3.1% qoq. In spite of this week's recovery, Aussie stays in tight range against greenback and could be vulnerable to another selloff in case of a hawkish FOMC statement.
Elsewhere, equities tread water as markets awaits FOMC and BoJ rate decisions. DJIA and S&P 500 closed nearly flat overnight. Nikkei pared initial loss and is trading up 0.1% at the time of writing while other Asian markets are mildly lower. Fed is widely expected to keep interest rate unchanged this week but may add a touch of hawkishness in the statement to pave the way for a December hike. Fed will also release new economic projections. There are talks that BoJ may considering deepening negative interest rates and tweak the asset purchase program. But there are risks of no action from the central bank due to divergence among policy makers.
As for today, Swiss trade surplus is expected to expand to CHF 3.27b in August. German PPI is expected to rise 0.0% mom, drop -1.5% yoy in August. US housing starts are expected to drop to 1.19m in August while building permits are expected to rise to 1.17m.