NZD/USD: bears remain in control below 21-4hr SMA

• NZD/USD: bearish bias persists despite weaker dollar post Fed.
• NZD/USD: FOMC send Kiwi higher but still below 21-4hr SMA

NZD/USD has rallied on the outcome of the FOMC today and on the back of lower yields and a weaker US dollar as traders felt let down without a hint that June was a done deal. Currently, NZD/USD is trading at 0.7003, down -0.02% on the day, having posted a daily high at 0.7033 and low at 0.6992.

NZD/USD initially sparked to aforementioned highs before settling down at current levels and into a sideways drift now that the market has absorbed the minor changes to the statement and what was otherwise a pretty lifeless event.

Fed statement unravelled 

The statement shows that the Fed noted weaknesses in the economy while remaining confident that inflation will rise to their target or above. "The accompanying statement reports that the economy continues to expand at “a moderate rate”. It acknowledged a slight slowdown in consumer spending, but noted investment continued “to grow strongly” and the jobs market is “strong”.Meanwhile, inflation measures have “moved close to 2 percent” with an emphasis placed once again on the fact the inflation target is “symmetric,” explained analysts at ING Bank.

NZD/USD levels

Technicals lean bearish still while a new low has been set accompanied with the RSIs biased to the downside as well. Support is at 0.6880 and resistance is at 0.7040/50 (21-4hr SMA)  and 0.7180 on the wide.