Breaks 200-Day EMA On Dovish Feel To Fed Minutes

NZD/USD prints $0.6243, the pair was ~1.5% firmer in Wednesday's trading.

• The Kiwi generally outperformed yesterday with only NOK and SEK besting the NZD in the G10 space. NZD/USD broke $0.62, a level tested several times this month, before trading above its 200-day EMA at $0.6237. Soft U.S. PMI data facilitated a leg lower for the USD in early NY hours, with an increase in initial jobless claims also noted. Later, U.S. equities and bonds rallied as the Fed minutes from their November meeting showed that most officials are backing slowing the pace of interest rate hikes, with only "various" participants looking for a somewhat higher terminal rate vs. previous expectations. This applied some extra weight to the USD into the close.
• On the day, the S&P500 rose ~0.6%, DXY fell ~1% and the VIX fell to its lowest level since 18 Aug.
• Post yesterday's RBNZ meeting OIS markets now price a terminal OCR of 5.45%, just below the Bank's new peak forecast of 5.50%. There are now ~71 bps of hikes priced in for the next RBNZ meeting.
• Technically, bulls look to target the high from 12 Aug at $0.6468, a break through there would open the way to the high from 3 June at $0.6576. Bears need to breach the 200-day EMA at $0.6237 to re-establish the downtrend.
• The domestic data calendar is empty today, and general liquidity will be hampered to the U.S. Thanksgiving holiday.