Fed hawkish cut risk weighs on majors, USDJPY and AUDUSD vulnerable

Major currency pairs are experiencing heightened volatility ahead of the Federal Reserve's anticipated rate decision, with markets increasingly concerned about a potential 'hawkish cut' scenario. EURUSD has dipped 0.2% to 1.0570, struggling below the 1.0600 resistance as traders position defensively. GBPUSD remains pressured at 1.2720, down 0.15%, amid UK growth concerns. USDJPY shows relative strength at 150.60, supported by rising US yields and safe-haven flows. AUDUSD continues to underperform at 0.6430, weighed by China's economic slowdown and commodity weakness. The Fed is expected to cut rates by 25 basis points, but hawkish rhetoric emphasizing pause thereafter could strengthen the dollar across the board. Market positioning suggests vulnerability in risk-sensitive pairs if the Fed signals fewer cuts in 2025 than currently priced. Technical levels show USDJPY targeting 151.50 on hawkish outcomes, while AUDUSD risks breaking below 0.6400 support.