NZD/USD snaps the five-day winning streak above 0.6160, FOMC Minutes eyed
|- NZD/USD trades on a softer note near 0.6162 in Wednesday’s early Asian session.
- Investors have priced in four rate cuts in 2024, beginning in June.
- The New Zealand Producer Price Index (PPI) Output Q4 came in at 0.7% QoQ versus 0.8% prior, better than expected.
The NZD/USD pair snaps the five-day winning streak above the mid-0.6100s during the early Asian session on Wednesday. Investors await the FOMC Minutes on Wednesday for fresh impetus. At press time, NZD/USD is trading at 0.6162, losing 0.08% on the day.
The markets are pricing in four rate cuts in 2024, beginning in June. The odds for a 25 basis points (bps) March rate cut had decreased to 34.4%, while the rate cuts in June increased to 55.1%, according to the CME Group FedWatch Tool. The FOMC will release the latest meeting minutes on Wednesday. The minutes of the meeting are likely to offer some hints about what Fed officials considered in their latest meeting to dismiss a March rate cut and the timing for first-rate cuts.
On the other hand, the latest data from Statistics New Zealand on late Tuesday showed that the Producer Price Index (PPI) Output for the fourth quarter (Q4) came in at 0.7% QoQ from 0.8% in the previous reading while the PPI Input figure arrived at 0.9% QoQ versus 1.2% prior. Both figures were better than the expectation.
Moving on, the highlight for traders on Wednesday will be the FOMC Minutes for January 30-31 meeting. Six Fed officials are set to speak on Thursday, with the focus on the Fed governor Christopher Waller's speech. Also, the New Zealand Trade Balance will be due on Thursday. These data could give a clear direction to the NZD/USD pair.
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.