NZD/USD rebounds from daily lows, trades below 0.69 ahead of FOMC
|- US Dollar Index fails to preserve daily gains.
- FOMC is expected to reaffirm its neutral stance.
The NZD/USD pair slumped to a daily low of 0.6850 earlier in the day but was able to recover the majority of its daily losses in the second half of the day. As of writing, the pair was down 0.07% on a daily basis at 0.6876.
Before the FOMC publishes the minutes of its January 29-30 meeting later in the session, the greenback started to lose strength in the last hour and allowed the pair to reverse its course. Although there were no fundamental drivers that may have triggered a USD sell-off, the sharp upsurge witnessed in the GBP/USD pair amid Brexit optimism pulled investors away from the greenback.
“Minutes from the January FOMC meeting will be published at 14:00 ET. Given the range of speakers since the January meeting who support "patience," the Fed minutes should reiterate a dovish message overall — but could risk highlighting some disagreements on the FOMC,” TD Securities analysts said in a recently published report.
- FOMC Minutes Preview: Major Banks expecting a reiteration of a dovish message.
In the early Asian session on Thursday, employment data from Australia will also be looked watched closely by the participants as a sharp reaction in the AUD/USD pair could impact the kiwi's price action.
Key technical levels
NZD/USD
Overview:
Today Last Price: 0.6876
Today Daily change %: -0.07%
Today Daily Open: 0.6881
Trends:
Daily SMA20: 0.6829
Daily SMA50: 0.6788
Daily SMA100: 0.6737
Daily SMA200: 0.6752
Levels:
Previous Daily High: 0.6888
Previous Daily Low: 0.6814
Previous Weekly High: 0.6875
Previous Weekly Low: 0.6719
Previous Monthly High: 0.694
Previous Monthly Low: 0.6516
Daily Fibonacci 38.2%: 0.686
Daily Fibonacci 61.8%: 0.6842
Daily Pivot Point S1: 0.6834
Daily Pivot Point S2: 0.6787
Daily Pivot Point S3: 0.676
Daily Pivot Point R1: 0.6908
Daily Pivot Point R2: 0.6935
Daily Pivot Point R3: 0.6982
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