- US Dollar Index stages modest recovery on Thursday.
- FOMC Chairman Powell shuts the door for a rate hike in near-term.
- Coming up: PPI data from US and Business PMI data from New Zealand.
The NZD/USD pair capitalized on the broad-based USD weakness in the second half of the day on Wednesday and rose to its highest level since late July at 0.6604. Although the pair struggles to push higher on Thursday, it continues to post small daily gains near 0.6590.
FOMC: No rate hikes in sight
As expected, the Federal Open Market Committee kept its policy rate unchanged within the 1.5% - 1.75% at its December policy meeting. However, Chairman Jerome Powell said that he would have to see a significant and persistent increase in inflation to consider a rate hike and triggered a USD selloff. The US Dollar Index, which tracks the greenback's performance against a basket of six major currencies, slumped to its lowest level in more than three months at 97.04 before staging a technical rebound.
Ahead of the mid-tier Producer Price Index (PPI) and weekly Jobless Claims data from the US, the index is up 0.08% on the day at 97.15.
More importantly, investors will be keeping a close eye on fresh developments surrounding the US-China trade talks. In case sides fail to reach a deal and the US ends up hiking tariffs on Chinese imports on Sunday, the trade-sensitive kiwi could start erasing this week's gains.
In the meantime, the Business NZ PMI data, which is expected to fall to 49.8 in November from 52.6 in October, from New Zealand will be looked upon for fresh impetus during the Asian trading hours on Friday.
Technical levels to watch for
|Today last price||0.6589|
|Today Daily Change||0.0001|
|Today Daily Change %||0.02|
|Today daily open||0.6588|
|Previous Daily High||0.6604|
|Previous Daily Low||0.6522|
|Previous Weekly High||0.6576|
|Previous Weekly Low||0.6424|
|Previous Monthly High||0.6466|
|Previous Monthly Low||0.6321|
|Daily Fibonacci 38.2%||0.6573|
|Daily Fibonacci 61.8%||0.6553|
|Daily Pivot Point S1||0.6539|
|Daily Pivot Point S2||0.6489|
|Daily Pivot Point S3||0.6457|
|Daily Pivot Point R1||0.6621|
|Daily Pivot Point R2||0.6653|
|Daily Pivot Point R3||0.6703|
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.