US interest rate decision: make or break time for NZD/USD

By FXStreet FXStreet (Guatemala) – NZD/USD is in a phase of consolidation on the big day with the FOMC meeting’s outcome and Fed’s interest rate decision.

The word on the street is that there will be lift-off, but the sentiment is that the Fed are almost in a position that they have to act now or lose their credibility in the market (FOMC meeting: it’s now or never) and subsequently the rhetoric from Yellen and from within the statement could be dovish and expose the greenback to downside pressures.

However, as analysts at Brown Brothers Harriman noted and explained in depth here, there are many investors and observers who do not think the Fed ought to raise interest rates today.

“They see the fresh sell-off in oil prices and are more concerned disinflation than inflation…others are concerned about the strength of the dollar and the weakness abroad…These doubts have given rise to speculation that the Fed will quickly realize the error of its ways and reverse the ill-conceived rate cut by the end of next year. ”

NZD levels and FOMC influences

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Source:: FX Street