A setback in the risk tone proliferated across the currency space ahead of the FOMC policy decision this Wednesday, with a notable disconnect in terms of the percentage movements observed between the performance of equities and risk-on currencies.

The roll-over in the commodity-linked FX, especially the most sensitive to risk such as the AUD and NZD, came as part of a move disjointed from the relatively tepid fall in the S&P 500 (-0.8%). The rise in the CHF and JPY reinforced the notion of a dial back in risk.

The USD was the exception as even the mild sell-side pressure on equities away from a key resistance failed to re-invigorate it. The general theme of USD weakness did nonetheless slow down, but it still under-performed most of the FX excluding AUD, NZD.

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