Post-FOMC Impetus Boosts Kiwi, Orr Defends RBNZ's Inflation Response Record

NZD/USD shot higher in response to Wednesday's monetary policy decision from the FOMC and the subsequent press conference with Fed Chair Powell. Policymakers delivered the expected/flagged 50bp rate hike and B/S normalisation process, while Chair Powell pushed back against the idea of 75bp rate moves, pointing markets towards 50bp hikes over the next couple of meetings.

• The pair last deals at $0.6537, down 7 pips on the day. Bulls would be pleased by renewed gains towards Apr 20 high of $0.6813. On the flip side, the key near-term support has been defined at $0.6411, which limited losses on May 3, when NZD/USD charted a virtual Doji candlestick.
• Governor Orr described the timing of the RBNZ's inflation response as "courageous" as his policymakers fired a starting pistol on the tightening cycle before most of their foreign peers. His made these comments in response to questions from opposition lawmakers, who accused him of waiting too long before withdrawing stimulus.
• The local data docket is virtually empty during the remainder of this week.