NZD/USD holds above the 0.6100 mark following New Zealand’s Trade Balance data
|- NZD/USD kicks off the new week on a positive note around 0.6107.
- The markets expect the Federal Reserve (Fed) to maintain monetary policy unchanged on Wednesday.
- New Zealand’s Trade Balance came in at $-13.57B YoY in December versus $-13.90B prior.
The NZD/USD pair hovers around the 0.6100 mark during the Asian trading hours on Monday. The pair edges higher despite the stronger US Dollar Index (DXY). Investors await the Federal Open Market Committee (FOMC) meeting and the January US Nonfarm Payrolls this week for fresh impetus. At press time, NZD/USD is trading at 0.6107, adding 0.26% for the day.
Market players expect the Federal Reserve (Fed) to keep rates steady at 5.25–5.50% at its January meeting on Wednesday. Traders were pricing in about a 48.2% chance of the first rate cut from the Fed in March, down from 88% a month ago.
Statistics New Zealand showed on Monday that the nation’s Trade Balance came in at $-13.57B YoY in December versus $-13.90B prior. Meanwhile, Exports dropped to $5.94B in December from the previous reading of $5.99B prior. Imports declined to $6.26B in the same month, compared to $7.20B in November.
Moving on, traders will monitor the Reserve Bank of New Zealand (RBNZ) Chief Economist Conway's speech on Tuesday. The attention will shift to the FOMC meeting on Wednesday. This event could trigger volatility in the market. Traders will take more cues from Fed Chairman Jerome Powell's speech during the press conference.
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