NZD/USD rises to test April highs after FOMC meeting

• Kiwi extends gains versus US dollar after Fed issues FOMC statement, keeping rates unchanged.
• Fed reiterates rates will state at the current level until the economy has weathered.

The NZD/USD pair rose to 0.6132, hitting a fresh two week high after the FOMC meeting. The Federal Reserve (Fed) kept interest rates unchanged as expected at 0.00-0.25%. The greenback retreats across the board after the decision.

Among G10 currencies, the kiwi is the biggest gainer of the day and rose further after the Fed’s decision. An improvement in risk sentiment and a weaker US dollar kept NZD/USD well supported.

As of writing it trades at 0.6120, near daily highs and headed toward the highest close since March 11. On the upside, the next resistance emerges at 0.6125/30 (April high). On the flip side, support might lie at 0.6100, followed by 0.6040/45.

The Fed kept interest rate unchanged as expected. The decision had a limited impact so far on financial markets. Chairman Powell is offering a press conference. The statement was considerably different from the previous one. The FOMC mentioned rates will stay at the bottom until the economy is on track to meet unemployment and inflation targets.

Technical levels