- Markets have largely priced in rising odds of a Fed hike in June. Fed speakers have been prepping up the markets for rate hikes this year.
- Boston Fed President Eric Rosengren speaking about the U.S. economy overnight said that unemployment has dropped below its natural equilibrium and could overheat the economy.
- He said that we could see faster interest-rate hikes if unemployment were to drop below 4 percent.
- On the data front, the NFIB (National Federation of Independent Business) survey showed small-business confidence slipped in April.
- With respect to the RBNZ markets are expecting a hint of hawkishness on the cards considering improved conditions in the last three months.
- Bias for NZD/USD remains neutral to slightly bullish. The pair finds minor trendline support at 0.6830 and major trendline support at 0.6775.
- Bullish RSI divergence keeps alive scope for upside. A break above 20-DMA at 0.6945 will see some upside momentum.
FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 94.6663 (Bullish), while Hourly USD Spot Index was at -0.306854 (Neutral) at 0200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
