NZD/USD retreats toward 0.6300 on US Dollar strength, ahead of minutes
|- US Dollar gains momentum versus commodity and emerging-market currencies.
- NZD/USD remains in range ahead of the FOMC minutes.
The NZD/USD pair continues to trade in a range, now off highs, and close to the 0.6300. The move lower took place amid a stronger US Dollar across the board. Still, majors remain limited amid low volatility.
After Powell, ahead of minutes
Earlier today, an improvement in risk sentiment pushed the pair to 0.6324 but again it lost momentum near the 0.6330 area and pulled back. More recently and during Fed’s Powell speech it fell to 0.6298, hitting a fresh session low.
Powell’s comments have little impact on markets. He mentioned that it is important for the Fed to keep inflation around the target. Yesterday he said the Fed will buy more Treasury securities after the tension seen in money markets during September.
The key event ahead is the FOMC minutes from the latest Fed meeting. Back in September 18, the central bank cut the interest rate and the minutes could show clues about the next steps and also how divided is the FOMC. Later in New Zealand, the ANZ Monthly Inflation Gauge is due.
Technical outlook
The pair appears to have formed a symmetric triangle in the short-term with a key resistance at 0.6325 and the critical support seen at 0.6295. If price drops or rises above the mentioned levels, it could trigger interesting moves.
On top of 0.6325, it would resume the upside, and the bullish tone will likely intensify on top of 0.6330, clearing the way to 0.6350. On the flip side, under 0.6295, the next support is seen at the weekly low at 0.6280 followed by 0.6255.
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.