- NZD/USD reversed its direction after closing higher on Tuesday.
- US Dollar Index rebounds toward 90.00 on Wednesday.
- Wall Street’s main indexes look to open sharply lower.
The NZD/USD pair rose more than 40 pips on Tuesday but erased all those gains on Wednesday. As of writing, the pair was losing 0.75% on a daily basis at 0.7194.
The risk-averse market environment is making it difficult for the NZD to continue to find demand. Reflecting the sour mood, major European equity indexes are down between 1% and 1.3%. Additionally, the S&P 500 Futures and the Nasdaq Futures are losing 0.9% and 1.3%, respectively, suggesting that safe-haven flows will continue to dominate the markets in the second half of the day.
Meanwhile, the greenback is gathering strength as a safe haven and the US Dollar Index is testing 90.00, rising 0.22% on a daily basis.
There won’t be any significant macroeconomic data releases featured in the US economic docket on Wednesday. However, investors will be paying close attention to the FOMC’s April meeting minutes. Although this publication is not expected to deliver any fresh insights regarding the policy outlook, policymakers’ view on price pressures could impact the USD’s valuation in the late American session.
At the moment, the 10-year US T-bond yield is rising 1.25% and another leg up after FOMC Minites could provide a boost to the greenback and vice versa.
