- NZD/USD attempted a mild rebound from the two-week lows.
- US Dollar Index (DXY) sees modest gains at 93.50.
- Federal Reserve Chairman Powell’s testimony & RBNZ policy announcement in focus
The NZD/USD declined over100 pips yesterday, hitting a two-week low of 0.6639 on Tuesday. Investors are cautious ahead of key events, the pair is consolidating losses ticking up 0.23% to 0.6682.
DXY steady pre-Powell’s
Risk off trading boosted the greenback at the start of the week, The US Dollar Index (DXY) rallied to 93.78 on Monday before settling up 0.6% at 93.55. The DXY is trading steady at 93.5 prior to testimonies from the Federal Reserve Chairman Jerome Powell and US Treasury Secretary Mnuchin before the House Financial Services Committee,
Existing Home Sales and Richmond Fed Manufacturing Index are the highlights of the US economic calendar
On the other hand, the Reserve Bank of New Zealand (RBNZ) will announce its monetary policy decision in the Asian session on Wednesday.
Last week, New Zealand’s finance minister, Grant Robertson, had said that there was a possibility that the RBNZ could keep its interest rate unchanged until March of 2021in the case that the economic recovery is stronger than expected. A neutral tone from the central bank suggested by the finance minister, could boost the NZD