NZD/USD: bird could keep flight trajectory on dollar weakness
By FXStreet NZD/USD has been on the bid and dragged along with a sell-off in the greenback post Yellen’s cautionary tones and the FOMC statement’s language converging with the general concerns about global growth.
The FOMC yesterday was surprisingly dovish, in respect to the bullish tones of 2015 and the hawkishness in the dot plot that signalled at least 4 hikes in 2016. We are now looking at just two and perhaps none at all if global conditions deteriorate.
Brent oil nears last week high on USD selling (note, WTI recently capped at $40.10)
Gold strengthens on USD weakness
Silver clocks 5-1/2 month high
Not surprisingly, the commodities and sector’s currencies are rallying on dollar weakness, but considering the major concerns that are attached to the glut in oil and general supply in commodities where demand is stagnant and remains at 10 year lows, perhaps the moves are going against the curve? (Even Yellen’s presser was cautioning on this theme and hence the pull back in the dot plot). At the same time, the Aussie jobs report was not exactly conducive to a rally in the antipodeans, but AUD/USD broke the 0.76 handle all the same.
Source:: FX Street
