- The dollar regains strength during the American session, remains in the recent range.
- The FOMC will announce its decision at 18:00 GMT.
- NZD/USD is approaching the key support at 0.6185/90.
The NZD/USD It broke below 0.6220 and fell to 0.6196, hitting a six-day low. The pair maintains a negative bias ahead of the FOMC statement and as the dollar strengthens.
The next move is up to Powell and his teammates.
The Federal Reserve is expected to raise its key interest rate by three-quarters of a percentage point to 2.50% on Wednesday amid high inflation and signs of an economic slowdown. The statement (expected at 18:00 GMT), in particular the hints on the next steps, will be key to the market’s reaction. Jerome Powell’s press conference will begin at 18:30 GMT.
The US dollar awaits the outcome of the meeting trading around the top of the two-week range across the board. NZD/USD is hovering around 0.6200, falling for the second day in a row, still above critical support seen at the 20-day Simple Moving Average at 0.6185/90. To the upside, a consolidation above 0.6250 would point to an extension of the rally.
The kiwi is one of the worst performers on Wednesday, affected by the rebound in AUD/NZD and caution in financial markets. The cross broke a critical resistance zone at 1.1100 and jumped to test the four-year high at 1.1165/70.
Technical levels
Source: Fx Street
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