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The New Zealand Dollar’s rally against the Greenback on Tuesday dissipated after FOMC minutes showed willingness to hike if necessary. The Kiwi gains after the US Dollar weakens and the PBOC decides to keep rates unchanged whilst pumping more liquidity into the economy. NZD/USD continues to rally. The medium-term outlook could now be bullish. The New Zealand Dollar (NZD) rallied early on Tuesday, but that strength has dissipated as the US Dollar gained momentum following the release of Federal Open Market Committee (FOMC) Minutes from the meeting held in early November. The FOMC Minutes showed the central bank leaving the door open to further tightening if necessary. The NZD/USD pair rose to an intraday high of 0.6086 during the Asian session, but the FOMC minutes sent the pair down to 0.6046 during the US session. The pair is still up 0.12%. After Chinese central bank officials pledged to support the Chinese economy on Monday, optimism surrounding the outlook for New Zealand’s chief trading partner has remained strong.   The NZD/USD pair brok above an important technical resistance level earlier in the session that stubbornly held for over three months at 0.6050-0.6055 despite repeated attempts. Daily digest market movers: New Zealand Dollar rises ahead of Fed minutes The New Zealand Dollar rises, benefiting from increased optimism over the outlook for China, its biggest trading neighbor.  This suggests continued strong demand for Kiwi goods, which translates into increased demand for the currency, strengthening it.  On Monday, People’s Bank of China (PBOC) officials reiterated their vow to roll out more policy support for the country’s beleaguered real estate sector.  The PBOC also decided to leave its benchmark Loan Prime Rate (LPR) near record lows of 3.45%, further supporting the flow of easy credit. The US Dollar, on the other hand, continues to be weighed down by the…

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Filed under: News - @ November 21, 2023 8:14 pm