- NZD/USD pair is rising for the fourth straight day on Wednesday.
- New Zealand revisions on GDP and unemployment helped NZD gather strength.
- Focus shifts to FOMC meeting, second-quarter GDP data from New Zealand.
The NZD/USD pair gained traction during the Asian session on Wednesday and continued to push higher after closing the previous three trading days in the positive territory. As of writing, the pair was trading at its highest level since September 3rd at 0.6748, gaining 0.42% on a daily basis.
Earlier in the day, New Zealand's pre-election economic and fiscal report showed that the unemployment rate was expected to be 7.8%, better than the 9.8% projected in the budget report. Additionally, the forecast for annual gross domestic product (GDP) contraction got revised to 16% from 23.5%.
Focus shifts to FOMC
Meanwhile, the greenback remains on the back foot ahead of the FOMC's Interest Rate Decision and Monetary Policy Statement. At the moment, the US Dollar Index is down 0.26% on the day at 92.83.
Previewing this event and its potential impact on the USD's performance, "we expect the Fed to take the first step in shifting from stabilization to accommodative policies at the upcoming meeting," said Bank of America analysts. "We anticipate a subdued reaction in the FX market, with risks somewhat skewed USD-negative on the day depending on forward guidance language."
In the early trading hours of the Asian session on Thursday, the second-quarter GDP data from New Zealand will be looked upon for fresh impetus as well. Investors expect the economic activity to contract by 12.8% on a quarterly basis.
Technical levels to watch for
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Pepe price forecast: Eyes for 30% rally
Pepe’s price broke and closed above the descending trendline on Thursday, eyeing for a rally. On-chain data hints at a bullish move as PEPE’s dormant wallets are active, and the long-to-short ratio is above one.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.