- NZD/USD rises for the third consecutive day.
- The US dollar index stays low after heavy selling on Tuesday.
- FOMC’s Meeting Minutes might not have any fresh insights on the policy outlook.
The NZD/USD traded higher on Wednesday after having posted a 30 pips gain on Tuesday. The pair was up 0.74 Percent to touch 0.6648, its highest level since August 7.
FOMC in Focus
As there isn’t any critical macroeconomic release from New Zealand for today, the dollar dynamics will dictate the trading direction in the NZD/USD. Only upcoming data from the Kiwis are the annual Credit Card Spending numbers to be released on Friday
The dollar index lost 0.55 Percent on Tuesday and finished the day at the lowest level in more than two years, at 92.32. The selling was attributed to the weakness in the US Treasury returns.
The index was down to 92.28 awaiting the FOMC minutes later in the day, and the 10-year US T-bond yield is down by 2.7 Percent.
FOMC minutes might not provide any further insights on the US monetary policy outlook. The committee plans to conclude its policy review by September, and the chances of changes in forward-guidance will be more pronounced in that period than now.
But, the market will not suffer from any lack of attention on the minutes released today, and a rebound in the US yields will also help the dollar.