- NZD / USD is pushing lower during European trading hours.
- The US Dollar Index rises towards 92.00 before the FOMC.
- The yield on 10-year US Treasuries rose more than 3% on Wednesday.
The pair NZD / USD came under further downward pressure during European trading hours as the USD began to find demand thanks to rising US Treasury yields At time of writing, the pair is trading at new lows 0.7168 daily, losing 0.3%.
DXY Approaches 92.00 As Investors Watch FOMC Dot Plot
Ahead of the FOMC policy announcements, the 10-year US Treasury yield rose to its highest level in more than a year at 1,669% and last saw a daily rise of 3.05%. to 1,667%. As a result, the US dollar index gained traction and is currently posting modest daily gains at 91.96.
Earlier in the day, New Zealand data revealed that the current account deficit in the fourth quarter narrowed to NZ 2,695 $ NZD billion from 3,521 $ NZD billion in the third quarter, but this reading was largely ignored by market participants.
The FOMC is expected to keep its policy rate unchanged. However, investors will scrutinize the updated Economic Projections for possible signs of a sea change in the long-term rate outlook.
If markets conclude that the Fed could start tightening its policy earlier than expected amid concerns about rising Treasury yields and inflation expectations, the NZD / USD could extend its slide before the end of the month. week. On the other hand, the pair could turn to the north if the authorities continue to minimize inflation expectations and cause a liquidation of the USD.
Technical levels
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