NZD/USD remains capped below the 0.6200 barrier following FOMC Minutes, focus on US PMI data

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  • NZD/USD snaps the six-day winning streak around 0.6177 in Thursday’s early Asian session. 
  • The FOMC January minutes show no hurry to cut the interest rates.
  • The New Zealand annualized Trade Balance narrowed to -12.5 billion YoY in January versus -13.62 billion YoY prior. 
  • The US S&P Global PMI, weekly Initial Jobless Claims, and Existing Home Sales are due on Thursday. 

The NZD/USD pair trades on a weaker note below the 0.6200 barrier during the early Asian section on Thursday. The January FOMC Minutes showed that policymakers will need to have greater confidence that inflation will return to target sustainably before cutting rates. NZD/USD currently trades near 0.6177, down 0.05% on the day. 

According to minutes of the FOMC released Wednesday, Federal Reserve (Fed) officials were in no hurry to cut interest rates. Most participants said no cuts would be coming until the central bank held “greater confidence” that inflation was receding. The Fed members will assess both upside and downside risks and are worried about lowering rates too quickly. Traders have pushed out the first rate cut from the March to June meeting, and the expected level of cuts for 2024 is lowered to four from six.  

On the Kiwi front, Statistics New Zealand revealed on Wednesday that the nation’s annualized Trade Balance narrowed to -12.5 billion YoY in January compared to the previous reading of -13.62 billion YoY (revised from -13.57 billion). Meanwhile, Imports came in at 5.91 billion versus 6.22 billion prior. Exports arrived at 4.93 billion from the previous month's 5.85 billion. 

Looking ahead, investors will keep an eye on the US S&P Global PMI data, the usual US weekly Initial Jobless Claims, Existing Home Sales, and the Chicago Fed National Activity Index. Additionally, FOMC’s Cook, Kashkari, Jefferson, and Harker are set to speak later in the day. On Friday, the New Zealand Retail Sales for the fourth quarter (Q4) will be released. 

 

NZD/USD

Overview
Today last price 0.6177
Today Daily Change 0.0008
Today Daily Change % 0.13
Today daily open 0.6169
 
Trends
Daily SMA20 0.6111
Daily SMA50 0.6182
Daily SMA100 0.6082
Daily SMA200 0.6077
 
Levels
Previous Daily High 0.6192
Previous Daily Low 0.6129
Previous Weekly High 0.6153
Previous Weekly Low 0.6049
Previous Monthly High 0.6339
Previous Monthly Low 0.6061
Daily Fibonacci 38.2% 0.6168
Daily Fibonacci 61.8% 0.6153
Daily Pivot Point S1 0.6135
Daily Pivot Point S2 0.61
Daily Pivot Point S3 0.6072
Daily Pivot Point R1 0.6198
Daily Pivot Point R2 0.6226
Daily Pivot Point R3 0.6261

 






 

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