NZD/USD drops on hawkish FOMC statement

Investing.com – The New Zealand dollar dropped against its U.S. counterpart on Thursday, as indications of a possible U.S. rate hike before the end of the year lent support to the greenback.

NZD/USD hit 0.6648 during late Asian trade, the session low; the pair subsequently consolidated at 0.6666, retreating 0.54%.

The pair was likely to find support at 0.6615, the low of October 14 and resistance at 0.6780, Wednesday’s high.

At the conclusion of its two-day policy meeting on Wednesday, the Federal Reserve kept interest rates unchanged and said that it would assess whether the U.S. economy had strengthened enough to warrant higher interest rates at its December meeting.

Investors were looking ahead to revised U.S. economic growth data, as well as the weekly report on jobless claims due later in the day, for further indications on the strength of the economy.

The kiwi was lower against the Australian dollar, with AUD/NZD gaining 0.42% to 1.0663.

Earlier Thursday, data showed that Australia’s import prices rose 1.4% in the third quarter, disappointing expectations for an increase of 1.6%, after a 1.4% gain in the three months to June.

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