As the world’s leading investment manager and financial market journalist, I bring you the most up-to-date analysis of the NZD/USD pair. Despite its modest intraday gains to a two-month high, the pair is facing challenges in capitalizing on this momentum. A softer risk tone has pushed the USD away from its multi-month low, putting pressure on the pair.
The dovish Fed expectations may limit the USD recovery, which could help prevent major losses for the NZD/USD pair. The current global risk sentiment, as reflected in the weaker equity markets, is benefiting the safe-haven Greenback and driving investors away from the Kiwi. However, the anticipation of a rate-cutting cycle by the US central bank in September and hopes for economic stimulus from China could support the New Zealand Dollar.
From a technical standpoint, the breakout above the crucial 200-day Simple Moving Average (SMA) signals a bullish trend, indicating that any further decline in the pair could present a buying opportunity. Traders should keep an eye on the upcoming FOMC meeting minutes and Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium for clues on the future direction of the USD.
Overall, while short-term fluctuations may occur, the long-term trend for the NZD/USD pair appears to be bullish, with potential buying opportunities on the horizon. Stay informed, stay alert, and make strategic investment decisions to maximize your returns in the forex market.
Economic Indicator
FOMC Minutes
FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.
Next release: Wed Aug 21, 2024 18:00
Frequency: Irregular
Consensus: –
Previous: –
Source: Federal Reserve