# NZ, Aussie dlrs have busy day, Fed minutes loom Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-17 Category: TRADING Category URL: https://financedigest.com/category/trading Meta Title: Fed Meeting Minutes Excitement Sees NZ Dollar Rally Meta Description: Stay informed with the latest updates on the volatile Australian and New Zealand dollars in the Forex market, with anticipation building for the release of US URL: https://financedigest.com/nz-aussie-dlrs-have-busy-day-fed-minutes-loomhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-17t015136z1lynxmpei7g01rrtroptp4global-forex-1736815456912-compressed.jpg) By Alun John HONG KONG (Reuters) – The Australian and New Zealand dollars were volatile in Asia on Wednesday, before ending up back near where they started, providing some excitement ahead of the release of minutes of the U.S. Federal Reserve’s [latest meeting](https://www.financedigest.com/institutions-need-to-consider-spreadsheet-management-to-meet-the-pras-latest-stress-testingexpectations.html "Institutions Need to Consider Spreadsheet Management to Meet the PRA’s Latest Stress Testing Expectations") later in the day. The kiwi jumped to as high as $0.6383 after the Reserve [Bank of New Zealand hiked](https://www.financedigest.com/asian-shares-gain-as-fears-about-rapid-fed-hikes-bank-crisis-fade.html "Asian shares gain as fears about rapid Fed hikes, bank crisis fade") rates by an expected 50 basis points (bps) and pointed to the need to bring forward the timing of future rate increases. The currency then pared its [gains and was last 0.28% higher](https://www.financedigest.com/ftse-100-opens-higher-informa-leads-gains.html "FTSE 100 opens higher, Informa leads gains") at $0.6361. It (the RBNZ’s remarks)was marginally on the hawkish side, enough to keep the pressure on rates,” said Jason Wong, senior market strategist at BNZ, who said the track for the official cash [rate implied another 50 bps hike](https://www.financedigest.com/bank-of-england-set-to-hike-to-4-as-rate-peak-looms.html "Bank of England set to hike to 4% as rate peak looms") in October. Across the Tasman Sea, the Australian dollar fell as much as 0.5% after data showed Australian [wage increases](https://www.financedigest.com/greece-to-increase-minimum-wage-again-before-election.html "Greece to increase minimum wage again, before election") missed forecasts and lagged badly behind inflation. It later pared those losses to trade down 0.15%, [holding back](https://www.financedigest.com/fear-of-failure-holding-back-british-entrepreneurs-new-research-finds.html "Fear Of Failure Holding Back British Entrepreneurs, New Research Finds") just above the symbolic $0.7 level. \[ Elsewhere, the dollar index, which tracks the greenback against six main peers, was a fraction lower at 106.3, having ended on Tuesday largely unchanged. The index has [recovered most of the ground it lost](https://www.financedigest.com/qa-am-i-eligible-to-recover-my-lost-off-plan-funds-in-spain.html "Q&A: Am I eligible to recover my lost off-plan funds in Spain?") last week after a cooler-than-expected U.S. inflation reading but [remains well off its mid-July top](https://www.financedigest.com/survey-finds-regulation-remains-top-financial-services-priority-for-2017.html "Survey finds Regulation Remains Top Financial Services Priority for 2017") of 109.29. The [Fed’s beef with the market](https://www.financedigest.com/markets-start-signalling-fed-may-be-going-too-far-amundi.html "Markets start signalling Fed may be going too far – Amundi") in recent days and weeks has been that they (the Fed) don’t subscribe to the market’s view that it will be cutting rates in 2023,” said Ray Attrill, global head of FX strategy at National Australia Bank. “So if there are things in the minutes that push back against that notion, and that leads to a repricing of the U.S. rate curve for 2023, that could be a catalyst for a reversal of the U.S. [dollar weakness that has characterised this last month](https://www.financedigest.com/european-shares-hit-nine-month-high-dollar-wobbles-after-powell-remarks.html "European shares hit nine month high, dollar wobbles after Powell remarks") or so. Also of interest is whether the recent equity [market rally](https://www.financedigest.com/jittery-markets-attempt-risk-on-rally-while-waiting-for-powell.html "Jittery markets attempt risk-on rally while waiting for Powell") would continue, he said, as risk sentiment and the U.S. [dollar had been negatively correlated in recent months](https://www.financedigest.com/dollar-on-track-for-best-month-since-2015.html "Dollar on track for best month since 2015"). The euro was steady at $1.0180 after squeezing out small gains overnight, and sterling was last fetching $1.21225, up 0.2% [ahead of inflation data](https://www.financedigest.com/shares-steady-dollar-gains-ahead-of-u-s-inflation-data.html "Shares steady, dollar gains ahead of U.S. inflation data") that is expected to be red hot. The [Japanese yen](https://www.financedigest.com/japanese-yen-gains-as-ueda-set-to-be-named-next-boj-governor.html "Japanese yen gains as Ueda set to be named next BOJ governor") was at 134.1, little changed in Asia trade. The currency has been a major beneficiary of the softer dollar and [firmed](https://www.financedigest.com/dollar-stands-firm-while-traders-await-cpi.html "Dollar stands firm while traders await CPI") to as much as 131.7 per dollar last week, but has since given back some of those gains. In cryptocurrencies, bitcoin was back hovering around $24,000, down from a two [month high of $25,200 hit](https://www.financedigest.com/german-bonds-set-for-worst-month-in-decades-as-inflation-hits-new-highs.html "German bonds set for worst month in decades as inflation hits new highs") Monday. (Reporting by Alun John; Editing by Shri Navaratnam and Kim Coghill) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---