FXStreet (Córdoba) – The kiwi is about to end the week unchanged against the US dollar, which could be appositive signal considering that it dropped 400 pips during the previous two weeks.
NZD/USD affected by RBNZ, awaits the Fed
The pair was rising and even reached a 1-week high on Wednesday at 0.6424 but then, the Reserve Bank of New Zealand cut the interest rate and left the door open to more stimulus, triggering a decline of the kiwi across the board.
NZD/USD reversed and bottomed at 0.6252, slightly above Monday’s lows. Then rebounded and attempted to recover. The bounce from the lows was capped by 0.6320.
Currently it trades at 0.6285/90, slightly lower for the day and at the same level it had a week ago. So far today, it had moved in a range of less than 35 pips, on a quiet Friday in the forex market.
The next push in the market could come from the Federal Reserve decision. On Wednesday the central bank will announced if it rises rates or not. The decision, the statement and Yellen’s words are likely to define the next move of the US dollar.
The kiwi is about to end the week unchanged against the US dollar, which could be appositive signal considering that it dropped 400 pips during the previous two weeks.
(Market News Provided by FXstreet)