NZD/USD bulls expose to 0.6300 as Federal Reserve sees no bigger interest rate hikes

has delighted the Federal Reserve, which is visible in Federal Open Market Committee minutes. The majority of Federal Reserve policymakers have vouched for a slowdown in the interest rate hike pace to reduce financial risks and to observe the progress of efforts yet made in the form of restrictive policy measures.

This has resulted in a significant fall in the US Dollar. Considering the persistent nature of inflation in the United States economy, Fed chair Jerome Powell will shift to a half-percent rate hike extent for December’s monetary policy meeting.Market participants always awaitthat depict demand by the households to make projections for Consumer Price Index figures. The United States Durable Goods Orders data that display consumer demand for durables improved by 1% in October vs.

It is worth noting that households in the United States are addressing expenses with lower real income. Also, higher interest rates will result in higher interest obligations on purchases of durable goods, which could result in accelerating delinquency costs for credit providers.On Wednesday, Reserve Bank of New Zealand Governor Adrian Orr hiked its Official Cash Rate by 75 bps. This has widened the Reserve Bank of New Zealand-Federal Reserve policy divergence.

Widened Reserve Bank of New Zealand-Federal Reserve policy divergence and hawkish interest rate guidance is likely to strengthen the Kiwi Dollar further and NZD/USD may smash 0.6300 sooner.NZD/USD is marching towards the horizontal resistance placed from August 12 high at 0.6469 on a daily scale. The asset has comfortably established above the 61.8% Fibonacci retracement at 0.6103. The pair has crossed the 200-period Exponential Moving Average at 0.

Meanwhile, the Relative Strength Index is oscillating in a bullish range of 60.00-80.00, which indicates more upside for the Kiwi Dollar.

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