The NZD/USD pair soared early Monday with the current confidence in the financial market, where the dollar is facing more pressure before the FOMC meeting and the fourth quarter GDP reading from the U.S. economy which is expected with accelerating growth that is easing fear over the outlook.
The latest data from the New Zealand showed easing inflation pressure on the RBNZ, yet with eased growth fears the monetary loosening from the RBNZ is not expected soon and neither is tightening.
Also the greenback is waiting for the important FOMC decision, in addition to the fourth quarter GDP reading, which leaves the main input for the pair this period the risk appetite and ongoing upside correction across the board.
On Tuesday at 15:00 GMT, the U.S. economy will issue the Richmond Fed Manufacturing Index for January, where it’s expected at 5.0 from the previous reading of 3.0.
Originally posted here
