NZD/USD turns positive on the day above 0.7020 after FOMC Minutes
- NZD/USD staged a modest rebound after dropping below 0.7000.
- US Dollar Index pulls away from three-month highs after FOMC Minutes.
- Some FOMC policymakers see incoming data providing a less clear signal about economic momentum.
After rising to a daily high of 0.7061 during the European trading hours on Wednesday, the NZD/USD pair reversed its direction and dropped below 0.7000 in the early American session. However, with the greenback losing its strength, the pair staged a rebound and was last seen gaining 0.23% on the day at 0.7026.
DXY retreats modestly after FOMC Minutes
The modest USD weakness after FOMC Minutes seems to be helping the NZD/USD head to a positive daily close. The US Dollar Index (DXY), which climbed to its strongest level in three months at 92.84, is currently flat on the day near 92.60.
The FOMC's publication revealed that policymakers agreed the committee's standard of "substantial further progress" was generally seen as not having yet been met. Moreover, some participants mentioned that the incoming data was providing a less clear signal about the underlying economic momentum, arguing the Fed needs to be patient in making changes to asset purchases.
There won't be any high-tier macroeconomic data releases from New Zealand on Thursday and the USD's market valuation is likely to continue to impact NZD/USD's movements.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
