- NZD/USD climbed to fresh daily higher near 0.6730.
- US Dollar Index remains depressed below 93.00 on Thursday.
- Focus shift to mid-tier US data, FOMC’s policy announcements.
The NZD/USD pair spent the Asian trading hours moving sideways a little below 0.6700 on Thursday but gained traction ahead of the American session. As of writing, the pair was trading at fresh daily highs near 0.6730, gaining 0.5% on a daily basis.
The broad-based selling pressure surrounding the USD seems to be allowing the pair to edge higher. Despite the election uncertainty, risk flows continue to dominate the financial markets and make it tough for the USD to find demand as a safe haven. At the moment, the S&P 500 futures are up nearly 2% on the day and the US Dollar Index is losing 0.66% at 92.85.
FOMC is likely to stay put as focus remains on US elections
In the second half of the day, the weekly Initial Jobless Claims and the third-quarter Unit Labor Costs will be featured in the US economic docket. More importantly, the FOMC will announce its Interest Rate Decision and release the Monetary Policy Statement.
However, the FOMC is unlikely to provide any fresh insights into the policy outlook while waiting for the next president of the US and the implications of the election outcome on the next coronavirus relief bill.
Previewing the FOMC’s November meeting, “we expect no policy action or significant guidance on future policy,” said Citibank analysts. “The meeting will be held just following US elections and in the wake of a very substantial upward revision to Fed growth forecasts in September. This backdrop argues for a very quiet meeting.”
FOMC Preview: Expect no policy action or significant guidance on future policy – Citibank.
Technical levels to watch for
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