- The US dollar firmed on Wednesday following the Fed's hawkish stance.
- Investors waiting for signs of rate cuts remain disappointed.
- RNBZ Governor Orr will speak early on Thursday before the markets open.
The NZD/USD pair retreated on Wednesday after the latest minutes from the Federal Reserve's (Fed) Federal Open Market Committee (FOMC) meeting revealed a much more cautious stance on rate cuts than many investors expected. .
Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr will speak late on Wednesday, ahead of Thursday's Pacific session. New Zealand retail sales will be released next.
Although the latest Federal Open Market Committee meeting minutes do not outright rule out a rate cut in September, Fed policymakers remain firmly more hawkish than investors expected, and the odds of a rate cuts in September have been reduced further. According to the CME's FedWatch tool, rates markets are pricing the odds of a quarter-point cut in September below 60% after the FOMC revealed Fed members' strong desire to wait for signals. firmer that the pace of inflation will continue to fall to the Fed's 2% target.
NZD/USD Technical Outlook
The New Zealand Dollar has retreated to the 200 hourly EMA at 0.6080, retreating from highs reached on Wednesday near 0.6150. NZD/USD hit its highest since mid-March on Wednesday, but has fallen to one-week lows and is on track to pull back below the 200-day EMA at 0.6073.
NZD/USD hourly chart
NZD/USD daily chart
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.
