- The NZD / USD gains traction during the Asian session.
- The US Dollar DXY Index continues to move sideways above 93.00.
- Investors wait for the FOMC to announce policy decisions.
The pair NZD / USD It closed for the fourth straight day in negative territory on Tuesday, but rebounded during Asian trading hours on Wednesday. With price action being subdued during the European session, the pair appears to have entered a consolidation phase around the 0.7020 region.
Focus shifts to the FOMC
As expected, The People’s Bank of China (PBoC) announced on Wednesday that it leaves the 1-year and 5-year LPRs unchanged at 3.85% and 4.65%, respectively.. However, the bank injected around 110 billion Chinese yuan of short-term cash and eased fears about the Evergrande financial crisis that could have turned into a global upheaval. In turn, the NZD has managed to rally forces against its American counterpart.
On the other hand, the DXY US Dollar Index continues to move sideways near 93.20 as investors remain on the sidelines while wait for the US Federal Reserve to publish its rate decision together with the updated summary of the economic projections.
Market participants will be looking for new clues as to when to reduce the asset purchase. Before the FOMC meeting, “the Fed is ready to leave its monetary policy unchanged, but will hint at next steps“said FXStreet analyst Yohay Elam.” There is a high probability that President Powell will deliver a pessimistic message, weighing on the dollar. “
NZD / USD technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
