Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Aussie and Kiwi decrease vs. greenback in late trade
On Thursday, the Australian and New Zealand dollars dived against their American counterpart, pulling back from peaks, reached earlier when the Fed announced a highly-anticipated rate lift.
The currency pair AUD/USD dived 0.21%, trading at 0.7694, off Wednesday’s two-and-a-half week peak of 0.7722.
On Wednesday, at the end of its two-day policy gathering, the Fed lifted interest rates by 25 basis points to 1.00% from 0.75%, exactly as expected.
The US dollar dived broadly following the decision, as the major bank’s stance was considered to be less hawkish than expected, given projections of three rate lifts this year and not four as some analysts had hoped for.
The currency pair NZD/USD dived 0.55%, trading at 0.7008, having reached a more than one-week high of 0.7050 during last session.
Earlier on Thursday, Statistics New Zealand posted that the country’s GDP added 0.4% during the fourth quarter of last year, thus confounding expectations for a surge of 0.7%.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.