NZD Gains as Fed Rate Hike Bets Ease Amid Dovish Remarks
The New Zealand Dollar (NZD) gained ground against the US Dollar (USD) on Wednesday, as the USD weakened following dovish remarks from Federal Reserve Bank of New York President John Williams.
Williams' comments effectively pushed back against expectations of an imminent October rate hike, with the probability of a rate increase dropping sharply to roughly 45%, down from 70.9% just a day earlier.
The NZD found strong support from encouraging economic data released by China, New Zealand's primary trading partner. Official figures showed the Manufacturing PMI creeping back into expansion territory at 50.1 in September, and the NBS Non-Manufacturing PMI rebounded significantly to 50.2, beating market estimates.
The NZD/USD pair trades around 0.5650, with immediate resistance at the nine-period EMA around 0.5682 and a more notable barrier at the 50-period EMA near 0.5792.