The NZDUSD has an RBNZ press conference ahead of the Asian session on Wednesday. After a recent break of support in the New Zealand dollar versus the U.S. dollar, traders can plan for the central bank speech and further U.S. data.
NZDUSD – Weekly Chart
The NZDUSD broke lower through the 0.6250 support recently and had fresh air below that level.
A dovish Reserve Bank of New Zealand update could lower the Kiwi dollar this week.
After traders have digested the RBNZ press conference, it will be followed by FOMC minutes in the United States session on Wednesday. Traders will seek further information from Federal Reserve policymakers in the minutes.
Last week saw comments from two Fed governors in Mester and Bullard that suggested that the early Federal Reserve decision to slow the pace of rate hikes from 50 bps to 25 bps wasn’t so unanimous after all. Both had argued in favor of sticking to 50 bps hikes and will do so again in March. The FOMC minutes on Wednesday could show how significant the hawkish minority within the Fed already was ahead of the January data with strong payrolls, high inflation, and strong retail sales.
Federal Reserve Chair Jerome Powell said less than two weeks ago that the central bank’s fight against inflation has “a long way to go.” A vital jobs report followed last week that showed the labor market remains hot despite the central bank’s efforts to cool the economy.
“This process is likely to take quite a bit of time,” Powell said. “It’s not likely to be smooth.”
At The Economic Club of Washington, Powell said the “extraordinarily strong” January job report surprised the Fed. The economy added 517,000 jobs in January as the unemployment rate fell to its lowest level in more than 53 years.
