FxWirePro: NZD/USD consolidates previous session's gains, surprise drop in NZ Q4 GDP caps gains

NZD/USD chart - Trading View 

NZD/USD closed 0.77% on Wednesday's trade after Fed policy decision weighed on the U.S. dollar across the board.

On Wednesday, Fed policymakers opted to maintain the current policy setting, reiterating their commitment to accommodative monetary policy. 

The dot plot showed that the majority of policymakers expected to maintain interest rates at record lows into 2024, pushing equities and risk assets higher.

The major was trading largely rangebound on the day, consolidates around 20-DMA after a surprise drop in NZ Q4 GDP.

Data released early Thursday morning in Asia showed New Zealand (NZ) Q4 GDP came in at -1.0% missing estimates at +0.1% QoQ and followed a revised 13.9% jump in the September quarter.

Despite the downside surprise in Q4 GDP, New Zealand's Deputy Prime Minister and Finance Minister Grant Robertson said that the economy remains resilient amid coronavirus pandemic-induced blow.

Positive comments from Robertson and dovish Fed-led market optimism keep the pair from slipping further.

The pair is set to reclaim bullish territory is price action manages to break above 20-DMA. Technical indicators are turning bullish and cloud offers strong support.

Scope for retest of yearly highs at 0.7464. Bullish invalidation only below daily cloud.