One that was not commented on until now was the Federal Reserve, which is of course the most important central bank in the world. NZD/USD was very noisy during Thursday’s trading as the US dollar was all over the place. This makes sense as there is a lot of uncertainty and of course central banks around the world are starting to hint that they may be easing their monetary policy. One that has not been commented on so far has been the Federal Reserve, which is of course the most important central bank in the world. Advertisement Image Strong Dollar Swings Make Very Profitable Trades Move Now! New Zealand also has many external factors to take care of as it is a commodity market. It is purely agricultural, but sometimes suffers from a lack of demand in Asia, which is the main destination for most of its products. Remember, the 50-day EMA is a widely watched technical indicator, and now that the ECB is out of the way, people can start focusing on the GDP numbers coming out of America, which were otherwise warmer than expected on Thursday. . This has people thinking that the Fed may have to stay tight longer than they had hoped. Fed to Finally Raise Aggressively The Fed will meet on Tuesday and Wednesday next week and will make a monetary policy statement on Wednesday. They are expected to rise 75 basis points, although some on Wall Street suspect it will be as much as 50. This has been a big problem for the markets as they continue to show high volatility based on hope and optimism. At the end of the day, it’s about credibility, and I think the Fed will eventually have to hike aggressively, not only because it’s been saying that for so long, but also because inflation remains very sticky in the US. If we were to break the bottom of the candlestick for Thursday’s session, I think you have a real chance of the market going down pretty bad. The alternative scenario, of course, is that we break above the candlestick for Thursday’s session, where NZD could target above 0.60, which is a big, round and psychologically important number, thus making a new area where a pullback could be expected.