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Session Recap: USD soft; Yen stronger on positive Japan exports

FXstreet.com (Barcelona) - USD has eased specially against Yen, on the back of better than expected Japan trade deficit based on fastest imports rise pace since Dec 2010, Japan Fin Min said. USD/JPY dipped to session lows at 95.17 after the news, while AUD/USD also fell to fresh weekly lows at 0.9433.

Australian leading index posted also better results than expected, lifting the Aussie from mentioned session lows to current 0.9480 level, while USD/JPY is at 95.37 last, off mentioned session lows. EUR/USD has been little changed slightly below the 1.34 handle, ahead of big event in the form of FOMC at 18:00 GMT.

Local share markets show mixed results as well with Nikkei index still in the positive up above +1%, while China Mainland indexes are below -1%. Gold and Oil eased a bit too, but also little moved, led by US equity futures that retraced a few points from SP500 yesterday's fresh weekly highs.

Main headlines in the Asian Session:

Japan PM Abe: Says he received strong support from G8 leaders for economic policies

Commodities Brief: Gold technical set up continues to deteriorate

Japan exports beat estimates

Australia Apr CB Leading Indicator increase to 0.3% vs 0.1%

Australia Apr Westpac Leading Index (MoM) improves to 0.6% vs 0.1%

AUD/USD stalls above 0.9450

Bank of Japan’s Kuroda to attend Japanese Parliament lower house fiscal committee today

EUR/USD consolidating gains near 1.3400

Flash: FOMC to announce taper at the end of Q3 - Nomura

Option expiries 10am NY cut

EUR/USD technical set up favors further upside ahead of FOMC

The EUR/USD continued to add to its gains, climbing another 26 pips to close at 1.3391. Volatility is likely to increase as we progress throughout the day, with the FOMC Economic Projections due out at 18:00GMT, followed by the Fed Policy Statement and press conference at 18:30GMT.
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Flash: Watch risk profiles for USD reaction post FOMC - UBS

How will the market react after today's Fed meeting? According to UBS Strategist Geoffrey Yu, "we believe that whatever the Fed will say, the key determination to make in identifying dollar's reaction function will be whether the market will be in a risk-on or risk-off mode ex-post, with bond yields and stock indices moving accordingly."
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