— This is the script of CNBC's news report for China's CCTV on March 17, Tuesday.
Markets have been highly volatile in the days leading up to the Fed meeting.
The stock market in recent sessions has been dancing to the tune of the rising dollar. After Friday's big selloff, the Dow on Monday jumped 228 to 17,977 and the S&P 500 soared nearly 1.4 percent to 2,081. Bond yields moved lower, as traders bought Treasurys ahead of the Fed meeting.
Anticipation of a change in its more than 6 year old zero-rate policy has been sending ripples through financial markets, lifting the dollar and driving commodity prices lower. Surrounding the Fed's policy meeting this week is the widespread expectation that it will no longer use the word "patient" to describe its stance on raising interest rates from record lows.
Markets, in the meantime, have had outsized responses to economic data, reacting to how the Fed might view it. Stocks have swung wildly, with the Dow making four triple-digit moves in both directions in the past week.
After the February jobs report, the stock market sold off on concerns the central bank would move quicker to raise rates, but the decline in February retail sales Thursday soothed markets, and helped spark a rally on the view the sluggish economy will force the Fed to move slowly.
It's not that investors have suddenly taken a greater interest in the growth rate of the economy.
Rather, since the general trend of growth puts the Fed on pace to hike raise, each individual data point is starting to take on a greater import. In addition, on how to trade currency and the gold, here are what analysts have to say --
[KINGSLEY JONES, Founder and CIO at Jevons Global] "Global investors increasingly.. I think they are are choosing to hold their cash in us dollars, theyre pretty conscious that we're come a Fed rate rise so theyre getting short duration, theyre moving out of long bonds and into short rates and ultimately cash."
[DANIEL HYNES, Senior Commodity Strategist at ANZ] "We've been talking about this for the last 6 months and you certiany get periods where the fundamentals can push the commodity markets outside of that trend but, certainly a stronger Us dollar has always been a negative for commodities and we're seeing that right now, then overlaid on top of that is possibility of rising interest rates um and another thing, the weak chinese market in particular but the strong US dollar is going to be an issue over the next few months."
CNBC's Qian Chen, reporting from Singapore.
(VO) THE HOTTEST APP AT SOUTHBYSOUTHWEST ALLOWS PEOPLE AROUND THE WORLD TO FEEL LIKE THEY'RE HERE-- IT'S LIVESTREAMING VIDEO APP MEERKAT
[KURT WAGNER ReCode, Social Media Associate Editor] "Everybody is talking about MEERKAT, MEERKAT and MEERKAT, It's a live streaming app that hold your phone up, and broadcast whats in front of you, whatever your doing, people can follow you in real time and it's like walk into a personal TV channel that anyone has a smartphone."
but with prominent investors Bill Gurley warning a startup bubble, SOUTH BY SOUTHWEST IS PUSHING TO BE ABOUT MORE THAN JUST THE LATEST SOCIAL APP- AIMING TO BE GROUND ZERO FOR REVOLUTIONARY INNOVATION, --
(VO) IN THE SPOTLIGHT -- A ROBOTICS PETTING ZOO.... SHOW CASING ROBOTS DESIGNED TO HELP IN DISASTERS, LIKE HURRICANES. BUT FIELD INNOVATION TEAM FOUNDER DESIREE MATEL-ANDERSON, SAYS THAT'S JUST THE BEGINNING...
[Desiree Matel-Anderson, Founder Field innovation team] "They're going to move at a exponential pace and certainly even in the next year when we have this conversation again you'll probably have a robot pet with you."
(VO)ANOTHER WINNER OF THE CONVENTION'S FIRST-TIME 'INNOVATION AWARDS'-- A COMPANY WHOSE 3-D PRINTERS CREATE FLESH- PRINTING OUT THEH LIKES OF AN EAR
[Danny Cabrera, BioBots CEO] "You can begin to replace cumbersome testing of animals - and for the first time ever you can test compounds and drugs on 3d human tissues on human cells without ever testing it on a human."
SURROUNDING ALL OF THESE ENTREPRENEURS AND STARTUPS are BIG BRANDS, from CAPITAL ONE and AT&T, to Pepsi and MAZDA. They are here to reach out to the TREND-SETTERS as well as PICK UP ON INNOVATION THEMSELVES.
(VO) FIRST TIME SPONSOR MCDONALDS IS HOSTING PITCH COMPETITIONS FOR AREAS IT WANTS TO INNOVATE- INCLUDING FOOD PACKAGING AND DELIVERY. ONE OF WINNERS, HELLO SPONSOR HELPS BRANDS MONITOR THEIR EVENT SPONSORSHIP ACTIVITY.
[Greg Kubin, Hellosponsor Co-Founder] "SXSW for McDonalds represents a really good opportunity for them to really engage with cutting-edge innovation."
(VO) BUT in Austin, known for its FOODIE SCENE, MCDONALDS is drawing criticism for the way that its handled its sponsorship.
"I don't eat McDonald's. I dont like it too much. it's too greasy."
(VO) BUT EVERYONE WANTS IN ON THE CUTTING-EDGE IDEAS HERE at SXSW ... FOR CNBC BUSINESS NEWS I'M JULIA BOORSTIN IN AUSTIN.