27 Apr 2016
NZD/USD hits 2-week lows after Fed, before RBNZ
The kiwi dropped against the US dollar after the decision of the Federal Reserve to leave rates unchanged as expected. NZD/USD bottomed at 0.6807 hitting the lowest level in two weeks and then bounced modestly to the upside, recovering most of the losses.
It was trading at 0.6830/40, slightly below the level it had before the decision. The pair seems under some bearish pressure ahead of the decision from the Reserve Bank of New Zealand (RBNZ).
NZD/USD between key events
As expected, the Federal Reserve left the target range for the fed funds unchanged at 0.25%-0.50%. The central bank sounded slightly hawkish by removing reference to the global and financial events posing risks to their outlook. Greenback rose with the statement, initially sharply but then it retreated.
In about 90 minutes (at 21:00 GMT), the RBNZ will announce its decision on monetary polciy. Also no change in rates is expected but the tone of the statement is likely to impact on the kiwi.
It was trading at 0.6830/40, slightly below the level it had before the decision. The pair seems under some bearish pressure ahead of the decision from the Reserve Bank of New Zealand (RBNZ).
NZD/USD between key events
As expected, the Federal Reserve left the target range for the fed funds unchanged at 0.25%-0.50%. The central bank sounded slightly hawkish by removing reference to the global and financial events posing risks to their outlook. Greenback rose with the statement, initially sharply but then it retreated.
In about 90 minutes (at 21:00 GMT), the RBNZ will announce its decision on monetary polciy. Also no change in rates is expected but the tone of the statement is likely to impact on the kiwi.