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.

Anil Panchal FXStreet

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.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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