- The NZD / USD is recovering modestly after falling towards 0.7210 earlier on Wednesday.
- The US dollar DXY index recovers much of Tuesday’s losses.
- The focus is on US durable goods order data and the FOMC’s Montearia policy announcement.
The pair NZD / USD posted its highest daily close in two weeks at 0.7237 on Tuesday, but had a hard time maintaining its bullish momentum. After falling to a daily low of 0.7214 at the start of the European session, the pair has made a technical correction and is recovering just above 0.7225.
Focus shifts to the FOMC
USD’s renewed strength on Wednesday seems to have put NZD / USD under bearish pressure. A sharp drop seen in the EUR / USD pair after European Central Bank (ECB) lawmaker Klass Knot said that they had tools to counteract a greater appreciation of the euro, has provided a boost to the USD. At the time of writing, the DXY US Dollar Index, which lost 0.24% on Tuesday, is up 0.23% at 90.37.
Later in the day, the spotlight will turn to US durable goods order data for fresh momentum. Even more importart, the United States Federal Reserve will announce its decision on the interest rate and publish the monetary policy statement.
NZD / USD technical levels
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