Can't Hold Above 0.6150 As Powell States March Cut Unlikely

NZD traded sideways ahead of the FOMC rate decision, post the Asia close yesterday. However, lower than expected US ADP Employment data (107k vs. 150k est), saw some selling of the USD, pushing the NZD briefly above 0.6150, a range it's held since Jan 16th, to 0.6175, but was unable to hold above those levels and quickly retraced that entire move. Post FOMC decision to hold rates steady at 5.5%, NZD again briefly traded above 0.6150, but we quickly reversed to find new lows for the day of 0.6102. Fed Chair Powell left the impression of a high bar to cut rates in March, which aided broader USD sentiment.

• NZD/USD continues to be range bound, trading largely in a 0.6100/0.6150 range since Jan 16, the 20 and 50-day with EMAs holding steady in the 0.6145/55 range.
• Late yesterday Fonterra released their global dairy update, showing December NZ Milk Collection Y/Y of +1.5%, while overnight the Corelogic Houses Price Data for Jan came out, showing house price momentum continuing to recover, -2.7% vs -3.3% prev
• No clear direction for the AUD/NZD cross as it continues to track recent ranges struggling to hold above 1.0800, while earlier Jan lows rest just under 1.0700, Australia has building approval data out a bit later today.
• Data out today: NZ Bond Sales 2030, 2033, 2051.