NZD/USD flirts with weekly high, around 0.6765-0.6770 amid modest USD weakness By HareshMenghani NZDUSD Fed Bonds Inflation Currencies
Following the previous day's two-way/directionless price move, the NZD/USD pair gained edged higher on Wednesday and moved away from its lowest level since late February touched earlier this week. Modest US dollar profit-taking slide from the two-year peak was seen as a key factor that offered support to spot prices, though any meaningful recovery still seems elusive.
Growing acceptance that the Fed would tighten its monetary policy at a faster pace to curb soaring inflation should continue to act as a tailwind for the buck and cap the upside for the NZD/USD pair. In fact, the markets have been pricing in multiple 50 bps rate hikes by the Fed and the bets were reaffirmed by hawkish remarks by several influential FOMC members.
Chicago Fed President Charles Evans said on Tuesday that he is "comfortable" with a round of rate hikes this year that includes two 50 bps increases. Adding to this, Minneapolis Fed President Neel Kashkari - one of the more dovish FOMC members - noted that policymakers will need to take even more aggressive action to bring down inflation.
This, along with inflation fears, pushed the yield on the benchmark 10-year US government bond to a level not seen since late 2018, which should underpin the greenback. Apart from this, the prevalent cautious market mood could drive some haven flows towards the USD and further collaborate to keep a lid on any further gains for the perceived riskier kiwi.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
NZD/USD struggles near its lowest since February amid sustained USD buyingThe NZD/USD pair remained depressed through the early European session and was last seen trading around the 0.6730-0.6725 region, or its lowest level
Weiterlesen »
NZD/USD could still visit 0.6700 near term – UOBIn opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, the downside bias could drag NZD/USD to retest the 0.6700 area in the next w
Weiterlesen »
NZD/USD is trading up from the recent cycle lows, but bears are lurkingNZD/USD has been correcting to the upside in the latter part of the New York session and is now meeting a resistance area that was carved out during U
Weiterlesen »
USD/CAD holds comfortably above 1.2600 mark amid broad-based USD strengthThe USD/CAD pair maintained its bid tone heading into the North American session and was last seen trading just a few pips below the daily high, aroun
Weiterlesen »
EUR/USD moves above 1.0800 amid USD pullback, ahead of EU Industrial dataThe EUR/USD pair has witnessed a decent upside move after exploding from the previous consolidation zone, which placed in a narrow range of 1.0780-1.0
Weiterlesen »
NZD/USD under pressure into the closing bell on Wall StreetNZD/USD was pressured into the final stages of Wall Street trade on Tuesday. At 0.6730, the bird is losing flight from a high of 0.6763 and trades clo
Weiterlesen »