Ella 
In early trading in Asia on Thursday, the NZD/USD pair faced resistance near the 0.6200 mark and stayed close to 0.6175. Weak New Zealand GDP (gross domestic product) growth data weighed on NZD/USD. However, the downside appears limited for NZD/USD as investors digest the outcome of the Fed meeting.
The latest data released by Statistics New Zealand on Thursday showed that New Zealand’s third-quarter economic quarter rate was -0.3%, with an expected expansion of 0.2% and the previous value of 0.5%. Additionally, New Zealand’s GDP was -0.6%, compared with growth of 1.5% in the second quarter, which was 0.5% lower than expected. NZD/USD attracted some bears following the New Zealand GDP release.
On the U.S. dollar, the U.S. dollar fell sharply after the Federal Reserve decision. The Fed stayed on hold at its December meeting, in line with markets. Interest rate forecasts show the Fed now expects to cut interest rates three times next year instead of two. As inflation falls, the likelihood that the Federal Reserve will cut interest rates by the middle of next year has increased.
Federal Reserve Chairman Powell said at a press conference that the process of dealing with inflation is not over yet, but with both inflation and the labor market showing signs of cooling, Fed policymakers will begin to discuss easing policies. Powell’s dovish comments put some selling pressure on the dollar.
Looking ahead, market participants will keep a close eye on U.S. jobless claims and retail sales data for November, due later on Thursday. The New Zealand business PMI and the US S&P Global PMI will be released on Friday. Traders will look for NZD/USD trading opportunities from this data.
