NZD/USD Fights for Direction Amidst Federal Reserve Uncertainty
The NZD/USD pair has been trading in a tight range, but the New Zealand dollar is weaker overall. According to technical analyst Christopher Lewis, the Kiwi dollar's performance can be attributed to market uncertainty surrounding the Federal Reserve's next move.
Lewis notes that traders are speculating about a 60% chance of a rate hike from the Fed, which could have significant implications for currencies like the NZD/USD. The upcoming release of PPI and CPI numbers in the US will be crucial in determining market sentiment.
The technical analysis suggests that the market is consolidating around the 200-day EMA, with prices hovering between 0.59 and 0.58 levels. Lewis believes that this may be an opportunity for the market to break out of its current range.