NZD/USD popped to a high of 0.6711 as the greenback was offered across the board following the release of dovish Fed dot chart.
Eyes hourly 200-MA
The pair is trading above hourly 200-MA at 0.6706. Kiwi was heading into the rate decision on a weaker footing, given the RBNZ surprised markets with a rate cut last week and hinted at more cuts in the near future. Mil prices dropped as well at GDT auction.
However, Fed’s dovish stance ensured the spot recovered previous session’s low and now trades around 0.67 handle ahead of Yellen’s press conference.
NZD/USD Technical Levels
The immediate hurdle is seen at 0.6775 (Feb 26 high), above which prices could target 0.6819 (Mar 4 high). On the other hand, a break below 0.6706 (hourly 200-MA) would open doors for a slide to 0.6669 (hourly 100-MA).
(Market News Provided by FXstreet)