- NZD/USD bears are in play towards the close on Wall Street.
- The dollar is still in the correction phase due to the sentiment of the Fed.
The NZD/USD pair rebounded from one-month lows this week but failed to make new all-time highs on Wednesday. The pair ranged from a low of 0.6296 to a high of 0.6348. Markets were dovish on Tuesday as comments from US Federal Reserve Chairman Jerome Powell helped lift commodity currencies despite strong nonfarm payrolls data from USA on Friday.
Overall, however, on the day, both the kiwi and the US dollar index, DXY, are little changed with a calendar empty of catalysts, aside from speakers from the Federal Reserve who continued to stress the need for investors to monetary policy adjustments remain restrictive.
The Fed’s John Williams insisted that interest rates were “just barely in tight territory” and that rates would need to stay at a tight level “for a few years to make sure we get 2% inflation.” The Fed’s Lisa Cook argued that “they need to be tight for some time to cool prices.” The Fed’s Neel Kashkari stressed that “the services side of the economy is still hot,” noting the lack of progress on inflation for basic services, excluding housing. As a consequence, the US dollar was able to rally in the US session, sinking all boats, including NZD/USD, which continues to bleed at the spot close on Wall Street.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
