Kiwi Recovers From One-Week Low Post-FOMC

NZD/USD ground lower in early trade Wednesday and extended losses when U.S. FOMC delivered their monetary policy decision, with the statement erring on the hawkish side. This was followed by an immediate rebound, as Fed Chair Powell struck some cautious notes in his post-decision presser.

• Ex-RBNZ Asst Gov Spencer told MNI that the Reserve Bank will likely start raising the OCR in August and hike again in November.
• The Xero Small Business Index tracking the performance of NZ small business economy showed that small firms had their strongest month on record in June.
• NZ Commerce Commission flagged issues with competition in the retail grocery sector, noting that the major retailers form a duopoly.
• New Zealand's ANZ Business Confidence hits the wires today. Looking further afield, building permits and ANZ Consumer Confidence are due Friday.
• NZD/USD trades +10 pips at $0.6960 at typing, with bulls looking for a jump above Jul 26 high of $0.7010. Above there opens Jul 15 high of $0.7045. Conversely, a dip through Wednesday's low of $0.6902 would shift focus to Jul 20 low of $0.6881.