After falling below 0.7000, the NZD/USD made a minor recovery.
Following the release of the FOMC Minutes, the US Dollar Index has retreated from three-month highs.
Incoming data, according to some FOMC policymakers, is offering a less clear indication regarding economic momentum.
The NZD/USD pair reversed course and fell below 0.7000 in the early American session after reaching a daily high of 0.7061 during European trading hours on Wednesday. However, as the greenback’s power waned, the pair rebounded and was last spotted at 0.7026, up 0.23 percent on the day.
The NZD/USD appears to be heading to a positive daily close as a result of the moderate USD weakness following the FOMC Minutes. The US Dollar Index (DXY) is currently steady on the day near 92.60, having soared to its highest level in three months at 92.84.
According to the FOMC’s publication, policymakers agreed that the committee’s threshold of “substantial further progress” had not yet been fulfilled. Furthermore, some participants stated that the incoming data was sending a less clear signal about the underlying economic momentum, saying that the Fed should proceed with caution when changing asset purchases.
On Thursday, New Zealand will not disclose any high-level macroeconomic data, and the USD’s market valuation is likely to continue to influence NZD/USD moves./n
