{"id":236512,"date":"2025-09-18T14:12:09","date_gmt":"2025-09-18T14:12:09","guid":{"rendered":"https:\/\/www.europesays.com\/us\/236512\/"},"modified":"2025-09-18T14:12:09","modified_gmt":"2025-09-18T14:12:09","slug":"nzdusd-weakens-sharply-after-the-fomc-losing-2-in-two-days","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/236512\/","title":{"rendered":"NZDUSD weakens sharply after the FOMC, losing 2% in two days"},"content":{"rendered":"

The Kiwi\u2019s slide has been one that hasn’t been seen in a while, with NZDUSD dropping 2% in just two sessions. <\/b><\/p>\n

The pair had initially climbed ahead of the FOMC,<\/b> driven by dovish concerns around the Fed<\/b> and sudden Dollar-hedging<\/b> that briefly pressured the DXY<\/b><\/a> <\/b>(sending the US Dollar down, hence the pair shooting upwards). <\/p>\n

However, Powell\u2019s balanced tone quickly flipped that narrative<\/b>, erasing the priced-in dovishness observed in the SEP, dot plot, and FOMC statement.<\/p>\n

\u201cYou can think of this, in a way, as a risk management cut,\u201d Powell noted, striking a cautious stance around future cuts that steadied the USD. <\/b><\/p>\n

There are still 25 bps of cuts priced at each of the two meetings left in 2025. <\/b><\/p>\n

Strong US Jobless Claims (231k vs 240K exp) this morning reinforced that shift, further fueling a V-shaped reversal<\/b> in the greenback. <\/p>\n

Coupled with New Zealand\u2019s atrocious GDP miss<\/b> (-0.9% vs -0.3% q\/q)<\/b>, the Kiwi was left in dismay, driving the pair sharply lower.<\/p>\n

The current move is reflecting the repricing of more cuts for the RBNZ as the data has been very volatile for New Zealand throughout the year. <\/p>\n

Expectations for a rate cut at the RBNZ upcoming meeting were at 82% last week and a 25 bps cut is now fully priced<\/b>, with some extra premium in case of a larger 50 bps.<\/p>\n

The NZ OCR is at 3% and the upcoming meeting will be happening on October 8th.<\/p>\n

Let’s have a look at NZDUSD through a multi-timeframe outlook to see where this takes the major pair.<\/p>\n","protected":false},"excerpt":{"rendered":"The Kiwi\u2019s slide has been one that hasn’t been seen in a while, with NZDUSD dropping 2% in…\n","protected":false},"author":3,"featured_media":236513,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,135,67,132,68],"class_list":{"0":"post-236512","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets","10":"tag-united-states","11":"tag-unitedstates","12":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115225712654567239","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/236512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=236512"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/236512\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/236513"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=236512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=236512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=236512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}