NZD/USD climbs to highest level in nearly two weeks around mid-0.6700s

• NZD/USD pair is rising for the fourth straight day on Wednesday.
• New Zealand revisions on GDP and unemployment helped NZD gather strength.
• Focus shifts to FOMC meeting, second-quarter GDP data from New Zealand.

The NZD/USD pair gained traction during the Asian session on Wednesday and continued to push higher after closing the previous three trading days in the positive territory. As of writing, the pair was trading at its highest level since September 3rd at 0.6748, gaining 0.42% on a daily basis. 

Earlier in the day, New Zealand’s pre-election economic and fiscal report showed that the unemployment rate was expected to be 7.8%, better than the 9.8% projected in the budget report. Additionally, the forecast for annual gross domestic product (GDP) contraction got revised to 16% from 23.5%. 

Focus shifts to FOMC

Meanwhile, the greenback remains on the back foot ahead of the FOMC’s Interest Rate Decision and Monetary Policy Statement. At the moment, the US Dollar Index is down 0.26% on the day at 92.83.

Previewing this event and its potential impact on the USD’s performance, “we expect the Fed to take the first step in shifting from stabilization to accommodative policies at the upcoming meeting,” said Bank of America analysts. “We anticipate a subdued reaction in the FX market, with risks somewhat skewed USD-negative on the day depending on forward guidance language.” 

In the early trading hours of the Asian session on Thursday, the second-quarter GDP data from New Zealand will be looked upon for fresh impetus as well. Investors expect the economic activity to contract by 12.8% on a quarterly basis.

Technical levels to watch for