NZD/USD sticks to modest gains below mid-0.5900, Fed rate decision, New Zealand GDP eyed


  • NZD/USD edges higher to 0.5920, gaining 0.08% on the day.
  • A Federal Reserve (Fed) pause is widely expected while keeping one more rate hike on the table.
  • Market players will monitor the Fed policy meeting, New Zealand growth data this week.

The NZD/USD pair posts modest gains and trades in positive territory for the second consecutive day during the early Asian session on Tuesday. The modest uptick in the Kiwi (NZD) is supported by a weaker US Dollar (USD) as the markets anticipate that the Federal Reserve (Fed) to maintain the interest rate unchanged at its meeting on Wednesday.

In the quiet day of New Zealand's economic docket, the headline surrounding China’s economic woes remains in focus. Any signs of an economic slowdown in China could drag the China-proxy Kiwi lower against the US Dollar and act as a headwind for the NZD/USD pair. Statistics New Zealand will release the nation’s Gross Domestic Product (GDP) for the second quarter on Thursday. The previous growth number came in at -0.1% and 2.2% on quarter and annual basis, respectively.

On the other hand, a Fed pause is widely expected, while keeping one more rate hike on the table. According to the CME Fedwatch tools, the Fed is not expected to surprise the markets, with the probability of keeping rates unchanged at 99%. The press conference by Fed Chairman Jerome Powell could offer hints about future interest rates path Any dovish stance from officials might trigger a decline in the US Dollar (USD).

Moving on, market participants will closely watch the Fed policy meeting on Wednesday at 18:00 GMT with the Fed widely expected to hold interest rates unchanged at 5.5%. The attention will shift to the press conference by Fed Chairman Jerome Powell at 18:30 GMT for some hints about the ‘dot plot’ and inflation expectations. Later this week, the New Zealand Gross Domestic Product (GDP) for the second quarter (Q2) will be due on Thursday. These figures could give a clear direction to the NZD/USD pair.

 

NZD/USD

Overview
Today last price 0.592
Today Daily Change 0.0022
Today Daily Change % 0.37
Today daily open 0.5898
 
Trends
Daily SMA20 0.5922
Daily SMA50 0.6054
Daily SMA100 0.6111
Daily SMA200 0.6199
 
Levels
Previous Daily High 0.5938
Previous Daily Low 0.5892
Previous Weekly High 0.5945
Previous Weekly Low 0.588
Previous Monthly High 0.6219
Previous Monthly Low 0.5885
Daily Fibonacci 38.2% 0.591
Daily Fibonacci 61.8% 0.592
Daily Pivot Point S1 0.5881
Daily Pivot Point S2 0.5863
Daily Pivot Point S3 0.5835
Daily Pivot Point R1 0.5927
Daily Pivot Point R2 0.5955
Daily Pivot Point R3 0.5973

 

 

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