As widely anticipated, FOMC made no changes to interest rates. The accompanying statement didn't change much. Perhaps the key takeaway is the ease with which the committee dismissed slowing in growth during the first quarter as likely transitory. That confirms June hike is firmly on the table.
With RBNZ expected to remain sidelined for a considerable period of time, New Zealand dollar is slowly losing its interest rate advantage over the U.S. dollar. Kiwi topped out near 0.7050 in April and the most recent rally fizzled out at 0.6970. 50.0% retracement of the 2015 - 2016 upswing is the next target.
With RBNZ expected to remain sidelined for a considerable period of time, New Zealand dollar is slowly losing its interest rate advantage over the U.S. dollar. Kiwi topped out near 0.7050 in April and the most recent rally fizzled out at 0.6970. 50.0% retracement of the 2015 - 2016 upswing is the next target.
