Ella 
In early Asian trading on Wednesday, NZD/USD broke five consecutive gains and was above mid-0.6100. The market is waiting to watch the minutes of Wednesday’s Federal Reserve meeting, which will inject new impetus into the market. As of press time, NZD/USD was trading at 0.6162, down 0.08% on the day.
The market expects the Federal Reserve to cut interest rates four times in 2024, starting in June. The probability of a 25 basis point (bps) interest rate cut by the Fed in March has dropped to 34.4%, while the probability of a rate cut in June has risen to 55.1%, according to the CME FedWatch tool. The Federal Reserve will release its latest meeting minutes on Wednesday. The minutes may provide some hints as to what factors Fed officials considered in rejecting a rate cut in March at their most recent meeting, as well as the timing of the first rate cut.
On the other hand, the latest data released by Statistics New Zealand late on Tuesday showed that New Zealand’s fourth-quarter Producer Price Index (PPI) output quarterly rate was 0.7%, compared with the previous value of 0.8%; the Producer Price Index input quarterly rate was 0.7%. 0.9%, the previous value was 1.2%. Both data were better than expected.
Next up, traders’ focus on Wednesday will be the minutes from the Federal Reserve meeting on January 30-31. Six Fed officials will speak on Thursday, with a focus on remarks from Fed Governor Christopher Waller. In addition, New Zealand’s trade balance will be released on Thursday. These data may provide clear direction for the NZD/USD pair.
