The New Zealand dollar is actively decreasing against the American currency during the Asian session of Thursday, updating two-weeks. From the opening of the day, the NZD / USD pair loses about 0.35% and is quoted at 0.7130. The sale of the New Zealand dollar is primarily caused by the sharp strengthening of the US dollar, which received support after the publication of the neutral protocols of the Fed meeting and reducing American stock markets.
As expected, the Federal Reserve left monetary policy unchanged, retaining the target rate range of 0-0.25%, as well as the monthly purchase of assets worth $ 120 billion. At the same time, the Fed was allowed to further slow down the pace of economic recovery of the US economy, which will depend on the spread of new strains of coronavirus and the effectiveness of campaigns for vaccination of the population. At the post-held after the meeting of the Fed, Powell press conference again stated that the economy was far from recovery so too early abolition of stimulation outweigh the risks of refusal from him in a later period. It is worth noting that the lack of significant changes in the FOMC statement means that the dollar should remain under pressure from deep negative real interest rates in the United States. However, instead, the dollar continues to be strengthened, allowing you to assume that a greater impact on it has a deterioration in market sentiment against the background of problems with the spread of vaccines in the world, as well as the escalation of tensions between the United States and China in the South China Sea.
The macroeconomic statistics released yesterday from New Zealand noticeable influence on the NZD dynamics did not offer. Thus, at the end of December, exports increased from the previous $ 5.21 billion to $ 5.35 billion. Imports for the same period added more notable: from $ 4.92 billion to $ 5.33 billion, which led to a decrease in the trade balance surplus in December from $ 3.3 to $ 2.94 billion
Despite the emerging news background, the NZD / USD pair retains the potential for further growth. In the coming days, the owners of the dollar will return to the market again, waiting for its decline against the backdrop of new fiscal incentives in the United States. Recall that the decision on a new germ package of the US Congress can accept after a few days. If the expectations of traders are justified and the dollar will weaken, the NZD / USD pair can be recovered above 0.7250.
NZD / USD BUYLIMIT 0.71 TP 0,7250 SL 0,7050
Artem Deev, Head of Analytical Department Amarkets
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