Takes Mild Hit From Disappointing GDP Report

NZD/USD surged past its 50-DMA on Wednesday, with the FOMC monetary policy meeting providing the main driver. The greenback went offered across the board as the dot plot/Fed Chair Powell's comments were read as relatively dovish, suggesting no rate hikes any time soon.

• New Zealand released some underwhelming Q4 GDP data this morning, with the economy shrinking 0.9% Y/Y (expectations were for a 0.5% expansion) and 1.0% Q/Q (consensus was for a 0.2% expansion, RBNZ expected a flat reading).
• NZD/USD slipped in reaction to the release, but promptly recouped gains and last sits +7 pips at $0.7250, although the kiwi lags its commodity-tied G10 peers (AUD, CAD, NOK). A break above Wednesday's high of $0.7264 would shift bullish focus to Mar 2 high of $0.7307. Conversely, a slide through Mar 12 low of $0.7151 would open up the 100-DMA/Mar 5 low at $0.7110/00.
• Dep FinMin Robertson announced that New Zealand & Australia are close to finalising a travel bubble deal, although there are still a few issues to talk through. The Stuff reported that NZ Cabinet could decide as soon as Monday to launch the quarantine-travel travel corridor in mid-April.
• Today's GDP report concluded major local data releases for this week.