- The NZD / USD recorded a modest bounce after falling below 0.7000.
- The US dollar index moves away from the three-month highs after the FOMC minutes.
- Some FOMC lawmakers see the incoming data providing a less clear signal about economic momentum.
After climbing to a daily high of 0.7061 during European trading hours on Wednesday, the pair NZD / USD it reversed its direction and fell below 0.7000 at the beginning of the US session. However, with the dollar losing steam, the pair experienced a rebound and was last seen gaining 0.23% on the day at 0.7026.
DXY declines modestly after FOMC Minutes
The modest weakness in the USD after the FOMC Minutes appears to be helping the NZD / USD to reach a positive daily close. The US Dollar Index (DXY), which rose to its strongest level in three months at 92.84, currently remains sideways on the day near 92.60.
The FOMC release revealed that policymakers agreed that the committee’s standard of “further substantial progress” had generally not been met. Additionally, some participants mentioned that the incoming data was providing a less clear signal about the underlying economic momentum, arguing that the Fed should be patient when making changes to asset purchases.
No high-level macro data from New Zealand will be released on Thursday and the USD market valuation is likely to continue to affect NZD / USD movements.
Technical levels
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