NZD/USD pierces through 0.75 to refresh 26-month top

The NZD/USD pair broke above the 0.75 handle for the first time since May 2015 as the greenback is being sold aggressively in the aftermath of the FOMC meeting. At the moment, the pair is trading at 0.7525, up 105 pips, or 1.5%, on the day.

After falling to mid-93 region in the first 30-minutes following the FOMC decision, the US Dollar Index seemed like it found support but came under a fresh selling pressure and plummetted to its lowest in 13 months at 93.22. As of writing, the index was at 93.27, down 0.7% on the day.

Investors, who found some interest in the greenback in the last couple of days, were disappointed after the FOMC July decision didn't have any remarks that could be seen as relatively hawkish or optimistic. Markets now don't see a chance of a September hike and it's unclear when the FOMC will start shrinking its massive balance sheet. Investors may need to see some robust hard data before they are convinced to start buying USD's again.

• CME Group FedWatch tool sees virtually no chance of September hike
• FOMC Sticks to Script: balance sheet unwind to begin "relatively soon" USD retreats - BBH

Technical outlook

0.7560 (May 13, 2015, high) could be seen as the first technical resistance before 0.7600 (psychological level) and 0.7665 (Apr. 27, 2015, high). On the downside, 0.75 now aligns as the initial support ahead of 0.7420 (Jul. 24 low) and 0.7335 (Jul. 20 low).