NZD/USD: eyes on the 0.72 handle after disappointing FOMc minutes
|Currently, NZD/USD is trading at 0.7183, down -0.16% on the day, having posted a daily high at 0.7200 and low at 0.7183.
Economic Wrap: FOMC minutes were not signalling March - Westpac
NZD/USD has been on the bid since the FOMC minutes disappointed the dollar bulls failing to deliver anything concrete in terms of timings of a rate hike and much of the rhetoric familiar to those sceptics that doubt the Fed are in a position to hike as soon as March let alone June. Indeed, US data has been mixed and the Fed needs to see more consistency in the economic recovery that the bulls believe is occurring. The price subsequently rallied through 50 and 20 hourly moving averages but fell just shy of the 0.72 handle Analysts at Westpac are expecting the price to remain neutral in the day ahead and within a narrow range between 0.7130 and 0.7240.
US dollar index erases gains after Fed’s minutes
NZD/USD 1-3 month:
The same analysts expect the Fed’s tightening cycle plus US fiscal expansion to maintain upside pressure on US interest rates and the US dollar, pushing NZD/USD down to 0.7000 or lower. "Granted, the NZ economy is strong and dairy prices have risen, but these forces are subservient to the US dollar’s trend," added the analysts.
NZD/USD levels
The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish. NZD/USD has the 0.7200 level as a resistance ahead of 0.7240 guarding 0.7280 and the aforementioned Feb highs.to the downside, 0.7140 ahead of 0.7120 guards 0.7040 and January 2017 double top.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.