NZD/USD returns to 0.5860 area after rallying to 0.5940 after FOMC

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  • Kiwi loses strength at 0.5940 and returns to previous levels at 0.5860.
  • US dollar rally supported by hawkish comments from Fed Powell.
  • A dovish FOMC statement sent the dollar lower.

The dollar has lost ground taken in the immediate aftermath of the FOMC decision release, with the US dollar rallying, following Fed Chairman Powell’s comments in the release.

Investors punished the US dollar following the release of the FOMC statement, sending the kiwi to five-week highs at 0.5940, before returning to previous levels in the middle of the 0.5800 range as Powell’s statement progressed. .

The dollar rebounds after Powell’s Fed comments

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The dollar has rebounded strongly as Fed Chairman Jerome Powell has adopted a more dovish stance to offset the negative impact of a dovish monetary policy statement.

Jerome Powell has denied the idea that the entity has excessively tightened its monetary policy and has assured that the economic data suggest that “we could reach higher levels than we anticipated at the September meeting“, which has relaxed expectations of a moderate pivot in December.

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As for the next meeting, Powell said no decision has been made yet and the time to slow down rates could be as early as December or at the February meeting.

Earlier, the dollar fell against its main rivals, after the FOMC statement stated that the pace of future rate hikes will be decided taking into account “the adjustment accumulated monetary policyariathe lags with which monetary policy affects economic activity and inflation, and economic and financial developments.

Technical levels to watch

NZD/USD

Overview
last price today 0.5866
daily change today 0.0024
Today’s daily variation in % 0.41
Daily opening today 0.5842
Trends
daily SMA20 0.5692
daily SMA50 0.5852
daily SMA100 0.6054
daily SMA200 0.6353
levels
Previous daily high 0.5903
Previous Daily Low 0.5803
Previous Weekly High 0.5874
Previous Weekly Low 0.5657
Previous Monthly High 0.5874
Previous Monthly Low 0.5512
Daily Fibonacci of 38.2% 0.5865
Daily Fibonacci of 61.8% 0.5841
Daily Pivot Point S1 0.5796
Daily Pivot Point S2 0.5749
Daily Pivot Point S3 0.5696
Daily Pivot Point R1 0.5896
Daily Pivot Point R2 0.5949
Daily Pivot Point R3 0.5996

Source: Fx Street

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