NZD/USD retreats toward 0.6300 on US Dollar strength, ahead of minutes

• US Dollar gains momentum versus commodity and emerging-market currencies.  
• NZD/USD remains in range ahead of the FOMC minutes.  

The NZD/USD pair continues to trade in a range, now off highs, and close to the 0.6300. The move lower took place amid a stronger US Dollar across the board. Still, majors remain limited amid low volatility.  

After Powell, ahead of minutes

Earlier today, an improvement in risk sentiment pushed the pair to 0.6324 but again it lost momentum near the 0.6330 area and pulled back. More recently and during Fed’s Powell speech it fell to 0.6298, hitting a fresh session low.  

Powell’s comments have little impact on markets. He mentioned that it is important for the Fed to keep inflation around the target. Yesterday he said the Fed will buy more Treasury securities after the tension seen in money markets during September.  

The key event ahead is the FOMC minutes from the latest Fed meeting. Back in September 18, the central bank cut the interest rate and the minutes could show clues about the next steps and also how divided is the FOMC. Later in New Zealand, the ANZ Monthly Inflation Gauge is due.  

Technical outlook  

The pair appears to have formed a symmetric triangle in the short-term with a key resistance at 0.6325 and the critical support seen at 0.6295. If price  drops or rises above the mentioned levels, it could trigger interesting moves.  

On top of 0.6325, it would resume the upside, and the bullish tone will likely intensify on top of 0.6330, clearing the way to 0.6350. On the flip side, under 0.6295, the next support is seen at the weekly low at 0.6280 followed by 0.6255.