- NZD/USD stays calm below 0.6600 following Tuesday's sharp drop.
- US Dollar Index moves sideways below 94.00 on Wednesday.
- Focus shifts to US stimulus talks, FOMC Minutes.
The NZD/USD pair came under strong bearish pressure in the late American session on Tuesday and closed the day in the negative territory. After extending its slide to a fresh weekly low of 0.6575 during the Asian session, however, the pair has gone into a consolidation phase and was last seen trading flat on the day at 0.6585.
Eyes on US stimulus headlines, FOMC Minutes
On Tuesday, US President Donald Trump tweeted out that he instructed to end stimulus talks until after the election and triggered a flight to safety. Trump later said that he was in favour of providing payroll protection and sending stimulus checks to American families and helped the market sentiment improve slightly.
Nevertheless, investors remain cautious ahead of the American session and allow the greenback to stay resilient against its rivals as a safe haven. At the moment, the US Dollar Index is virtually unchanged on the day at 93.83.
Later in the day, the FOMC will release the minutes of its September meeting. Previewing this publication, “one consideration will be whether debate and opposing views were somewhat more prevalent across non-voting FOMC members,” said Scotiabank analysts. “Markets may be sensitive toward any further indications that officials are not fully invested in an inflation overshoot."
In the early Asian session on Thursday, the ANZ Business Confidence and the ANZ Activity Outlook data from New Zealand will be looked upon for fresh impetus.
Technical levels to watch for
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