:NZD/USD consolidates Tuesday’s gains, trades above 0.65 ahead of key events
Our preference: the downside prevails as long as 0.6542 is resistance.
Alternative scenario: above 0.6542, look for 0.6562 and 0.6575.
The FOMC is expected to keep its policy rate unchanged on Wednesday.
US Dollar Index posts small daily losses, sits above 97.50.
Statistics New Zealand will release the first quarter GDP data.
After adding 40 pips and closing the day at 0.6535, the NZD/USD has gone into a consolidation phase
as investors moving to the sidelines ahead of key events of the day. As of writing, the pair was posting small daily losses at 0.6525.
The greenback, which took advantage of the selling pressure surrounding the euro,
gathered strength against its rivals on Tuesday and the US Dollar Index advanced to its highest level in two weeks at 97.77.
The dollar’s next move is very likely to be triggered by the FOMC statement and Chairman Powell’s remarks later today. At the moment,
the DXY is down 0.06% on a daily basis at 97.58.