USD consolidating ahead of this week’s FOMC meeting - ANZ

The USD consolidated overnight ahead of this week’s FOMC meeting and slew of economic data as noted by the analysts at ANZ.

Key Quotes

“With the Fed now firmly hiking and debate over the pace of upcoming hikes intensifying, and the ECB more neutral, the drivers of the liquidity cycle are shifting. That should keep the USD in the box seat against the NZD. However, we do need to acknowledge that the recent USD rally has petered out, which we suspect means we will need to see the commodity complex give way and four-hike sentiment towards the Fed to firm for a downward movement to accelerate again. A reasonable domestic pulse is expected to keep the NZD supported against non-USD crosses.”