The Kiwi pair has ranged traded between 0.6252 and 0.6281 so far in the session on Tuesday.
NZDUSD, among all currencies risk-related, was thrown under a bus on Monday as the US dollar soared to fresh cycle highs in what was a rout in global markets that saw bond yields surge and key equity indices sink.
Reduced market sentiment keeps investors seeking a flight to safe-haven assets. Wall Street is going into war, losing between 2.66% and 4.84%. On Tuesday, the US Federal Reserve will begin its two-day monetary policy meeting and is widely expected to hike rates by at least 0.50%. That, alongside the above-mentioned and the re-emergence of a China’s coronavirus outbreak, keeps investors uneasy.
”Markets are still reeling from Friday’s surprise rebound in US inflation; that’s seen a string of forecasters either up their terminal Fed Funds rate assumptions, call for more 50bp hikes or pencil in 75bp hikes (or all three!), and that, in turn, is crushing risk appetite,” analysts at ANZ Bank said.
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