The US Dollar (USD) has come under fresh downside pressure on Wednesday, as investors continued to digest the latest FOMC event and the mixed performance of US Treasury yields across the curve.

The Australian Dollar remains firm against the US Dollar after the Federal Reserve held rates steady, despite US inflation staying well above its 2% target. The decision was not unanimous: two members dissented in favour of a quarter-percentage-point rate hike. The AUD/USD trades at 0.7056.

The Japanese Yen lost ground against the US Dollar after the Federal Reserve kept rates steady, even though US inflation remains well above its 2% target. Of note, the decision was not unanimous, with two dissenters in favour of a quarter-percentage-point rate hike.

The Pound Sterling recovers some ground after the Federal Reserve held rates unchanged, as markets expected, in a 10–2 vote, with two dissenters voting for a rate increase. The GBP/USD trades near 1.3300.

The Bank of Canada (BoC) raised its rate to 2.50% on Wednesday and the Fed held at 3.75%-4.00%, so the Fed's lead shrank by a quarter-point in one session.

After the Fed's hold, Thursday's decision from the European Central Bank (ECB) is the week's last chance to change EUR/USD's rate gap, and a hold is expected there too. The pair rose on the statement and won back part of a slide from the session high just above 1.1150.

NZD/USD falls sharply on Wednesday, losing 0.98% on the day to trade around 0.5625 at the time of writing. The New Zealand Dollar (NZD) faces significant selling pressure after the Reserve Bank of New Zealand (RBNZ) unexpectedly left its benchmark interest rate unchanged.

AUD/USD advances on Wednesday, gaining 0.17% on the day to trade around 0.7035 at the time of writing. The Australian Dollar (AUD) benefits from hotter-than-expected inflation data in Australia, which strengthens expectations of another interest rate hike by the Reserve Bank of Australia (RBA).

USD/CHF consolidates modest gains on Wednesday ahead of the Federal Reserve’s (Fed) monetary policy announcement at 18:00 GMT. The pair remains on the front foot for a fourth consecutive day as traders favour higher-yielding currencies, leaving the Swiss Franc (CHF) under pressure.

The Pound Sterling retreats for the fourth consecutive day versus the US Dollar, down 0.02% as investors brace for the Federal Reserve policy decision and also digest the UK’s Autumn Budget. The GBP/USD trades near 1.3300, barely unchanged.

UOB’s Quek Ser Leang and Lee Sue Ann note AUD/USD has shifted into a slightly higher intraday range after touching 0.7055 in early Asia, with scope to test 0.7060 while major resistance at 0.7070 is seen out of reach and support at 0.7020.

USD/CAD is little changed during American trading hours on Wednesday as the Canadian Dollar (CAD) struggles to benefit from a widely anticipated Bank of Canada (BoC) interest rate hike.

EUR/CAD trades around 1.5640 on Wednesday, gaining 0.06% on the day at the time of writing, despite the Bank of Canada’s (BoC) decision to raise its benchmark interest rate by 25 basis points (bps) to 2.50%.

Standard Chartered’s Bader Al Sarraf and Nicholas Chia note that the RBNZ unexpectedly held its OCR at 2.75% in a narrow 4-3 vote, weighing on the New Zealand dollar despite signals that further tightening remains likely.

EUR/USD trades with a positive bias during American trading hours on Wednesday as the US Dollar (USD) pauses its advance ahead of the Federal Reserve’s (Fed) monetary policy decision, due at 18:00 GMT.

Rabobank’s Senior FX Strategist Jane Foley discusses whether the Japanese Yen (JPY) has regained safe haven characteristics after strong performance versus G10 peers.

Brown Brothers Harriman’s Elias Haddad notes AUD/USD has failed to clear its 200-day moving average, but stronger-than-expected Australian inflation data supports the case for further Reserve Bank of Australia (RBA) tightening. Headline and trimmed mean Consumer Price Index (CPI) are running above the RBA’s August projections, prompting futures to increase the implied probability of a November hike to 4.85% and to price in an additional move in Q1, underpinning the Australian

The Swiss Franc (CHF) has retraced previous gains against the US Dollar (USD) on Wednesday and trades practically flat on the daily chart, stronger as investors brace for the Federal Reserve’s (Fed) monetary policy decision, due later in the day.

EUR/GBP bears take a breather on Wednesday, pausing a two-day losing streak as traders trim their exposure to the British Pound ahead of the UK Autumn Budget at 12:30 GMT. At the time of writing, the cross trades around 0.8375, up 0.17% on the day, but remains near its lowest levels since May 2025.

The US Dollar (USD) capitalized on an unexpected monetary policy pause by the Reserve Bank of New Zealand (RBNZ), which held its Official Cash Rate (OCR) at 2.75% in a narrow 4–3 vote despite widespread market expectations for a 25-basis-points (bps) rate hike.

Brown Brothers Harriman’s Elias Haddad notes USD/CAD is holding above 1.4000 ahead of the Bank of Canada decision, where an 80% priced 25 bps hike to 2.50% would mark the start of a new tightening phase.

The New Zealand Dollar (NZD) sells off across the board on Wednesday and dives more than 1.3% against the US Dollar (USD) following the Reserve Bank of New Zealand’s (RBNZ) monetary policy decision.

The British Pound (GBP) is down 0.17% at around 209.70 against the Japanese Yen (JPY) during the European trading session on Wednesday. The cross is under pressure as the British currency weakens ahead of the United Kingdom (UK) Autumn Forecast Statement.

Chris Turner at ING highlights that EUR/USD is trading at its lows of the year, pressured by broad Dollar strength, high energy prices and uncertainty around the French budget. While Eurozone activity and upcoming 3Q26 GDP data look relatively resilient, tighter lending conditions and weaker corporate loan demand raise downside risks for EUR/USD technical support levels.

The British Pound (GBP) is heading south against the US Dollar (USD) for the fourth consecutive day on Wednesday, with investors awaiting the release of the UK budget and the US Federal Reserve’s (Fed) monetary policy decision, both due later in the day.

UOB’s Quek Ser Leang highlights that USD/CHF extended gains to 0.8294 despite overbought conditions, with intraday scope for further upside though a move to the major 0.8320 resistance is seen unlikely. On a 1–3 week horizon, he now expects the pair to test 0.8320 after a close at 0.8290, but judges the odds of a sustained break above this level as low while strong support has shifted to 0.8250.

USD/CAD gains ground for the third consecutive day, trading around 1.4060 during European hours on Wednesday. The Bank of Canada (BoC) is expected to deliver a 25-basis-point interest rate hike later in the day.

The Euro (EUR) trades close to its yearly low of 1.1113 against the US Dollar (USD) during the European trading session on Wednesday. The major currency pair is under pressure as heightened concerns in French bond markets and rising oil prices continue to weigh on the Euro.

The Australian Dollar (AUD) trades sharply higher against its major currency peers on Wednesday. Against the US Dollar (USD), the antipodean is up 0.15% to near 0.7035 even after giving back some of its early losses.

Commerzbank’s Norman Liebke notes that the Reserve Bank of New Zealand (RBNZ) surprised markets by holding at 2.75%, even as it signalled further hikes will likely be needed.