NZD/USD fails to portray risk recovery amid broad USD strength

  • NZD/USD remains under pressure as greenback bulls ignore FOMC minutes.
  • The US President Donald Trump’s trade positive comments, coupled with Fed’s criticism, fuelled risk-on amid light economic calendar.

With the US Dollar (USD) holding its head high against the majority of counterparts, despite overall dovish FOMC minutes, the NZD/USD pair continues being bears’ favorite at the start of Thursday’s Asian session. The Kiwi pair seesaws near 0.6400 by the press time.

The Federal Open Market Committee (FOMC) minutes reiterated the Fed’s rate cut as a mid-cycle adjustment and policymakers were not in unity for the action, leading up to highlighting the incoming data/event flow for future policy moves.

The US President Donald Trump spoke positive for the US-China trade deal while continued criticizing the US Federal Reserve’s monetary policy while taking aim at the Chairman Jerome Powell.

Risk sentiment recovered amid light economic calendar with the US housing market numbers flashing upbeat signals. The US 10-year and two-year Treasury yields, the gauges of risk sentiment, gain six and three basis points (bps) by the time of writing.

Given the market’s little care for the FOMC minutes, coupled with the absence of major data, all eyes are set on the Jackson Hole Symposium, which starts from late-Thursday, in order to witness fresh policy directions from the global central bank speakers scheduled for an appearance.

Technical Analysis

A downward sloping trend-line connecting lows since August 08 offers 0.6389 as immediate support ahead of highlighting the latest low of 0.6377. Alternatively, an upside break of 0.6416 may confirm a short-term falling wedge breakout and will trigger fresh advances targeting 0.6500 round-figure.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: 50-day SMA restricts immediate recovery

EUR/USD buyers look for confirmation, despite recent bounce, as prices still trade below the near-term key moving average, around 1.1025, during early Friday.


GBP/USD: On the bids above 100-bar SMA

GBP/USD holds on to recovery gains from 50% Fib retracement level while taking the bids to 1.2885 during the early Asian. Bullish MACD indicates pair’s another run-up to the short-term key resistance line.


USD/JPY extends the bounce above 108.50 on rising trade deal hopes

The USD/JPY pair extends its bounce from eight-day lows of 108.25 in Friday's Asian trading, with the bulls regaining control above 108.50 after White House Economic Adviser Kudlow's comments bolstered US-China trade deal hopes. 


Gold awaits clear direction around $1470 amid risk reset

With the fresh optimism surrounding the US-China trade accord, Gold prices struggle to extend the previous recovery while taking rounds to $1,471 amid Friday’s initial Asian trading session.

Gold News

US China trade and the global economy: Q&A with FXStreet senior analyst

After the meetings in October it was unclear if the new levies planned for December would be called off. And now, reports suggest that past duties may be removed. All in all, a positive development, isn't it?

Read more