Post-FOMC In Driving Seat, NZ Trade Data On Tap

NZD/USD ground lower into the Fed's monetary policy decision and see-sawed thereafter, finishing on a softer footing as U.S. central bank demonstrated hawkish resolve.

• The FOMC delivered the third consecutive 75bp rate hike, while their dot plot saw an upward adjustment in terminal rate forecast (now 4.6%). The prospect of fairly aggressive rate cuts towards neutral levels in the first round of ’25 dot projections tempered the initial hawkish reaction. Fed Chair Powell's presser inspired another risk sell-off as he warned against more pain to come.
• From a cross-asset perspective, U.S. equity benchmarks finished lower and the VIX index was a tad higher. The BCOM index erased its earlier gains prior to the Fed decision.
• NZD/USD last trades flat at $0.5853, with bears setting their sights on yesterday's low/Apr 3, 2020 low of $0.5844/43. A break here would open Mar 19, 2020 low of $0.5470. Bulls eye the $0.6000 mark for initial resistance.
• New Zealand's Westpac Consumer Confidence Index rose to 87.6 in Q3 from 78.7 prior but the authors of the survey warned that "spending appetites remain subdued" as "households' finances are being squeezed by high consumer prices and increases in borrowing costs."
• Monthly trade data will be released out of New Zealand in short order. RBNZ's Hawkesby will speak at a Financial Services Council conference later today.