As the world's eyes turned to the FOMC rate decision, a palpable sense of pessimism hung over the markets like a thick fog. Traders were on edge, their nerves frayed by the possibility that Jerome Powell might not deliver the dovish outlook they were hoping for. With a 25bp rise in interest rates already factored into the equation, any indication from the Fed that more hikes were on the horizon could send the market spiraling further downward.

As the RBA raised rates in Australia, investors were left feeling uncertain about the future. The move signaled a preference for tackling high inflation rather than focusing on recession prevention. The Australian dollar surged initially, but as global equities retreated, it too gave back some of its gains.

In this environment, the yen emerged as a safe-haven currency, drawing strong buying flows from investors seeking shelter from market volatility. And as traders anxiously awaited the Fed's decision, the greenback's fate hung in the balance, with US treasury yields set to experience a wild ride.

In the midst of all this uncertainty, gold shone as a bright spot for investors seeking refuge from risk aversion and a softer dollar. But the precious metal remained vulnerable to downside risks if US yields should rise.

Meanwhile, the oil market remained on the backfoot, with questions about global demand weighing heavily on prices. As OPEC+ production cuts were set to begin, the situation looked grim for oil-producing nations hoping for a rebound.

As the markets braced themselves for what was to come, the future remained uncertain. But one thing was clear - the decisions made by central banks and the FOMC would have far-reaching consequences for investors and econom