NZD/USD Snaps The Five-Day Winning Streak Above 0.6160, FOMC Minutes Eyed

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NZD/USD trades on a softer note near 0.6162 in Wednesday’s early Asian session. 

Investors have priced in four rate cuts in 2024, beginning in June.

The New Zealand Producer Price Index (PPI) Output Q4 came in at 0.7% QoQ versus 0.8% prior, better than expected. 

The NZD/USD pair snaps the five-day winning streak above the mid-0.6100s during the early Asian session on Wednesday. Investors await the FOMC Minutes on Wednesday for fresh impetus. At press time, NZD/USD is trading at 0.6162, losing 0.08% on the day.  

The markets are pricing in four rate cuts in 2024, beginning in June. The odds for a 25 basis points (bps) March rate cut had decreased to 34.4%, while the rate cuts in June increased to 55.1%, according to the CME Group FedWatch Tool. The FOMC will release the latest meeting minutes on Wednesday. The minutes of the meeting are likely to offer some hints about what Fed officials considered in their latest meeting to dismiss a March rate cut and the timing for first-rate cuts. 

On the other hand, the latest data from Statistics New Zealand on late Tuesday showed that the Producer Price Index (PPI) Output for the fourth quarter (Q4) came in at 0.7% QoQ from 0.8% in the previous reading while the PPI Input figure arrived at 0.9% QoQ versus 1.2% prior. Both figures were better than the expectation. 

Moving on, the highlight for traders on Wednesday will be the FOMC Minutes for January 30-31 meeting. Six Fed officials are set to speak on Thursday, with the focus on the Fed governor Christopher Waller’s speech. Also, the New Zealand Trade Balance will be due on Thursday. These data could give a clear direction to the NZD/USD pair. 
 NZD/USD

OVERVIEW Today last price 0.6165 Today Daily Change 0.0015 Today Daily Change % 0.24 Today daily open 0.615

 

TRENDS Daily SMA20 0.6107 Daily SMA50 0.6181 Daily SMA100 0.6079 Daily SMA200 0.6078

 

LEVELS Previous Daily High 0.6153 Previous Daily Low 0.6122 Previous Weekly High 0.6153 Previous Weekly Low 0.6049 Previous Monthly High 0.6339 Previous Monthly Low 0.6061 Daily Fibonacci 38.2% 0.6141 Daily Fibonacci 61.8% 0.6134 Daily Pivot Point S1 0.613 Daily Pivot Point S2 0.6111 Daily Pivot Point S3 0.61 Daily Pivot Point R1 0.6161 Daily Pivot Point R2 0.6172 Daily Pivot Point R3 0.6192

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