200-DMA In Play After FOMC Decision

NZD/USD took a hit after Wednesday's monetary policy decision from the FOMC, whose updated dot plot pointed to two hikes by the end of 2023, while 7 of 18 members saw a 2022 hike based on the current forecasts. The Fed raised the RRP rates and IOER as well, while leaving the broader monetary policy settings unchanged. NZD/USD dipped through the $0.7100 mark and attacked its 200-DMA, which has been intact since mid-2020.

• The RBNZ have published finalised bank capital adequacy requirements, reiterating that bank capital increases will begin on Jul 1, 2022.
• The Telegraph reported that NZ Trade Sec O'Connor will hold direct talks with UK Trade Sec Truss, after the two spoke over dinner on Wednesday.
• New Zealand's quarterly GDP report headlines the local docket today. BBG consensus sees the economy grow 0.9% Y/Y in the first quarter and New Zealand is widely expected to avoid a double-dip recession.
• NZD/USD last trades at $0.7059, a handful of pips above neutral levels. Bulls need a clearance of Jun 15 high of $0.7161, before targeting Jun 10 high of $0.7213. A fall through the aforementioned 200-DMA, which kicks in at $0.7042, would allow bears to take aim at Apr 7 low of $0.6997.