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NZD/USD retraces Tuesday’s rebound, steadies below 0.65

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NZD/USD retraces Tuesday’s rebound, steadies below 0.65

  • US Dollar Index rebounds toward 98.50 following Tuesday’s drop. 
  • GDT auction yields a 2% increase in GDT Price Index.
  • Focus remains on FOMC meeting and monetary policy announcements.

The NZD/USD pair took advantage of the broad-based USD weakness and New Zealand’s upbeat Global Dairy Trade (GDT) auction, which yielded a 2% increase in the GDT Price Index following the 0.4% decline in the previous auction, and snapped its five-day losing streak to end the day with a modest 20-pip gain.

With the trading action turning subdued ahead of the Federal Reserve’s critical monetary policy announcements, the pair is having a difficult time preserving its bullish momentum. As of writing, it was down 0.35% on the day at 0.6335.

Meanwhile, concerns over a military conflict in the Middle East following the attacks on Saudi oil facilities don’t allow the market sentiment to recover and weigh on risk-sensitive currencies such as the NZD.

Attention shifts to FOMC

Later in the day, Building Permits and Housing Starts data from the US will be released but are likely to be ignored by the market participants as they are likely to refrain from making any large bets while waiting for the outcome of this week’s Federal Open Market Committee (FOMC) meeting.

Previewing this crucial market event, “We expect the Fed to cut its key policy rates by 25 bps at this week’s FOMC meeting – which would be the second consecutive rate cut in the current easing cycle – taking the Fed Funds corridor to 1.75-2.00% with an Interest On Excess Reserves (IOER) rate of 1.85%. Two hawks will likely dissent…again,” said Nordea Markets analysts.

Technical levels to consider

NZD/USD

OVERVIEW
Today last price 0.6333
Today Daily Change -0.0026
Today Daily Change % -0.41
Today daily open 0.6359
TRENDS
Daily SMA20 0.6372
Daily SMA50 0.65
Daily SMA100 0.6545
Daily SMA200 0.6666
LEVELS
Previous Daily High 0.6362
Previous Daily Low 0.6321
Previous Weekly High 0.6452
Previous Weekly Low 0.6372
Previous Monthly High 0.659
Previous Monthly Low 0.6283
Daily Fibonacci 38.2% 0.6346
Daily Fibonacci 61.8% 0.6337
Daily Pivot Point S1 0.6333
Daily Pivot Point S2 0.6306
Daily Pivot Point S3 0.6292
Daily Pivot Point R1 0.6374
Daily Pivot Point R2 0.6388
Daily Pivot Point R3 0.6415
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