Kiwi is on the skids, trades at 0.6427 after losing the 0.6500 support now turned into resistance, showing just how fickle it really is as the Fed painted a gloomy economic picture, per ANZ Bank.
Key quotes
“NZD/USD has retraced considerable ground since the FOMC meeting, with the market blaming Fed Chair Powell’s sobering, yet very realistic, sentiments. More likely some hot air is just being released.”
“We think the overall tone of Fed Chair Powell’s commentary and the Fed’s stance should support risk – they have reaffirmed that the Fed funds rate will stay at zero, committed to maintaining bond purchases at ‘at least the current pace’ and are open minded to yield curve control.”
“With inflation projected to remain low for the next 3 years that potentially paves the way for more easing in the US, which has and will likely continue to buoy the NZD. But it could be a rough weekend.”
“Support 0.6370 Resistance 0.6500”
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