FOREX-Dollar slips ahead of Fed meeting, GDP data

* Aussie and kiwi at multi-week highs
* Yen hits six-week top in sign of caution
* Fed meeting and 1830 GMT press conference eyed
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Tom Westbrook
SINGAPORE, April 29 (Reuters) - The dollar eased on
Wednesday as the slowing spread of the coronavirus and moves to
re-open economies encouraged investors' to favour riskier
assets, though there was caution ahead of central bank meetings
in the United State and Europe.
The dollar has tracked risk sentiment closely through the
coronavirus crisis, and was broadly softer on other majors on
Wednesday, slipping a fraction against the rangebound euro and
pound, while the yen strengthened 0.3% to a six-week high 106.55
per dollar.
The greenback lost most ground against the Antipodean
currencies.
The Australian dollar AUD=D3 rose about 0.6% to a
seven-week high of $0.6533 - a sixth straight daily gain that
has it tracking toward its best month in four years. The kiwi
NZD=D3 rose by the same margin to a two-week high $0.6119.
AUD/
A public holiday in Japan and caution ahead of the U.S.
Federal Reserve meeting ending later in the global day, and the
European Central Bank meeting on Thursday kept currency markets
subdued. MKTS/GLOB
Investors will be watching for clues on the Fed's future
policy path after it responded to the economic devastation of
the COVID-19 pandemic by slashing rates, buying bonds and
backstopping credit markets. "There's no expectation the Fed will change policy," said
Joe Capurso, FX analyst at the Commonwealth Bank of Australia in
February.
Capurso said Fed's view of the extent of the economic
contraction caused by the coronavirus, and how long it might
hold rates at emergency levels, will be of key interest to
investors.
The Fed is due to issue a statement at 1800 GMT, followed by
a press conference with chairman Jerome Powell at 1830 GMT.
But before that quarterly GDP numbers will be released at
1230 GMT, with concensus forecasts for a contraction of around a
4%. Data released overnight had shown U.S. consumer confidence
slumped to a six-year low this month. The dollar was a touch softer against a basket of currencies
at 99.685 =USD . The British pound GBP= was marginally
steadier at $1.2469, as was the euro EUR= at $1.0846.
Cases of COVID-19, the respiratory illness caused by the
virus, topped 1 million in the United States overnight but
investor focus is now increasingly on plans to relax
restrictions and restore a battered economy. The risk-sensitive Australian dollar has benefited from
investors focusing on the positives.
The Aussie has soared - rising some 6% on the month and 18%
from March's 17-year low - as China, its major export market,
began reopening its economy as the coronavirus epidemic subsided
there, and recent move by Canada, France, Italy New Zealand and
Spain have also helped confidence.
"This is quite extraordinary," said National Australia
Bank's head of FX strategy, Ray Attrill. "It didn't underperform
the G10 pack by nearly as much in March, and does leave us a
little cautious about the near-term outlook."
The bank revised up its year-end forecast for the Aussie to
$0.6750, but expects it to fall to $0.6200 at the end of the
current quarter.