NZD/USD consolidates Tuesday's gains, trades above 0.6400
|- Uncertainty surrounding US-China trade dispute keep NZD's gains limited.
- US Dollar Index stays calm near 98 in amid a lack of macroeconomic data releases.
- Coming up: FOMC will release the minutes of its October meeting.
The NZD/USD pair touched its highest level since early November at 0.6436 on Wednesday but failed to continue to push higher with the NZD losing interest amid the ongoing uncertainty surrounding the United States (US)-China trade dispute. As of writing, the pair was trading at 0.6420, losing 0.15% on a daily basis.
On top of US President Trump's comments about his intention to raise tariffs on Chinese imports further if they failed to reach a trade deal, Reuters on Wednesday reported that Trump administration was asking for deeper concessions from China to accept the tariff rollback and cancel the December 15th hike.
Meanwhile, the bi-weekly Global Dairy Trade (GDT) auction on Tuesday yielded a more-than-expected increase in the GDT Price Index to support the NZD's performance.
Focus shifts to FOMC minutes
On the other hand, as investors remain on the sidelines while waiting for the Federal Open Market Committee (FOMC) to release the minutes of its October meeting, the US Dollar Index is registering technical recovery gains around the 98 mark, not allowing the pair to erase its daily losses.
Previewing the FOMC's publication, “We expect the FOMC minutes from the October meeting to elaborate on the Committee's decision to ease rates while also sending a firm signal to set the bar high for additional accommodation," said TD Securities analysts.
Technical levels to watch for
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