Recovery

NZD/USD bounced off its intraday low into the WMR fix Tuesday, as participants assessed the latest portion of Fedspeak. During his congressional confirmation hearing, Chair Powell said that "we're (...) going to be moving over the course of this year to a policy that is closer to normal," which "really should not have negative effects on the employment rate." Meanwhile, his colleagues Mester, George & Bostic pointed to potential for more aggressive policy tightening. The kiwi struggled keep up with its commodity-tied peers, but it fared better than the greenback, which was among the worst performers among major currencies.

• NZD/USD trades flat at $0.6788 at typing. Bulls see Dec 30/Jan 3 highs of $0.6857 as their initial target and a break here would shift focus to Dec 1 high of $0.6868. On the flip side, a retreat under Jan 6 low of $0.6733 would clear the way to the $0.6703/02 area, which limited losses in Dec.
• ANZ Commodity Price Index will hit the wires at the top of the hour, with building permits coming up Thursday.