- NZD/USD bulls are betting on a moderate 25 basis point rate hike from the Federal Reserve.
- The Federal Open Market Committee’s statement points to “some additional firmness in monetary policy.”
Modestly up 25 basis points, markets are pricing in the Fed’s tightening cycle coming to an end and the US dollar has sold off to test levels below 102. Consequently, the New Zealand dollar has made a new high. month at 0.6282 and rose from a low of 0.6171.
Today’s 25 basis point rise was largely expected, but only after market expectations ran wild in recent weeks and the Federal Open Market Committee statement signaled “some additional firmness in policy”, with the median of the dot chart pointing to one more rise.
Ahead of today’s Federal Reserve meeting, markets were pricing in a year-end target rate of 4.36%. The volatility of the reactions to the statement has reduced it to 4.26%. As of this writing, the 2-year US Treasury yield has dipped to 4.77%, from 4.259% the day before to a low of 3.958%. Consequently, the US Dollar Index, DXY, fell to a low of 102.065 from a high of 103.265 and the bird climbed.
Analysts at ANZ Bank explained that, in the specific case of the New Zealand dollar, “there is still a bit of a tug-of-war between stocks and flows, with bulls citing post-cyclone rebuilding, remoteness from banking woes and the hawkish stance of the Reserve Bank of New Zealand, and bears citing our current account deficit, a housing-centric economy and risks to credit ratings.”
NZD/USD
Overview | |
---|---|
Last price today | 0.6256 |
Today Change Daily | 0.0062 |
today’s daily variation | 1.00 |
today’s daily opening | 0.6194 |
Trends | |
---|---|
daily SMA20 | 0.6193 |
daily SMA50 | 0.6306 |
daily SMA100 | 0.6271 |
daily SMA200 | 0.6162 |
levels | |
---|---|
previous daily high | 0.6258 |
previous daily low | 0.6167 |
Previous Weekly High | 0.6278 |
previous weekly low | 0.6131 |
Previous Monthly High | 0.6538 |
Previous monthly minimum | 0.6131 |
Fibonacci daily 38.2 | 0.6202 |
Fibonacci 61.8% daily | 0.6223 |
Daily Pivot Point S1 | 0.6155 |
Daily Pivot Point S2 | 0.6115 |
Daily Pivot Point S3 | 0.6064 |
Daily Pivot Point R1 | 0.6246 |
Daily Pivot Point R2 | 0.6297 |
Daily Pivot Point R3 | 0.6337 |
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.