A relatively quiet Asian session as traders position themselves for the event risk due out a bit later on today. On the data front, New Zealand's current account balance fell to -0.66 Billion -vs- market expectations of -0.60 Billion while Japan's trade deficit came out a little better at-993.9 Billion Yen -vs- estimates of 1.17 Trillion Yen.
It would be an understatement to say that there is a bit of uncertainty leading up to the FOMC announcement. The FOMC quarterly projections report is released at the same time as the FOMC monetary policy statement with the former probably garnering more interest from traders given that the market doesn't expect any changes in monetary policy.
The projections report includes the FED's 2-year forecast for inflation and economic growth and, more importantly, a breakdown of the individual members interest rate forecasts. The FED chairman's press conference follows this and, while the FOMC statement is a scripted release, the unscripted question-answer format has the potential to generate the kind of volatility that could roil the markets, especially if there is a definitive response to the tapering question.