Forex
NZD/USD Crashes Through 0.5700 on Fed Rate Hike
The New Zealand Dollar (NZD) has dropped in six consecutive trading sessions after the US Federal Reserve raised its benchmark interest rate to 3.75-4.00%. The NZD/USD pair is now trading just above 0.5700, and the July low of around 0.5625 is the next level of note below.
The daily momentum gauge is at a low 8, which is as low as it has been since July. This suggests that the pair may be due for a bounce towards resistance at 0.5750.
The Reserve Bank of New Zealand (RBNZ) raised its cash rate to 2.75% on September 2, its second increase since July, in response to inflation hitting 4.1% in the second quarter.