The NZDUSD – like other pairs – saw dollar selling after the core PCE data – take the pair move up to test the 200 hour MA. Sellers leaned keeping the pair steady.
Chair Powell came along and the comments caught hawks attention today.
The price moved below the 100 hour MA (blue line at 0.61965). The pair has more recently moved below the swing area of recent lows between 0.6155 and 0.6165. That area is now close risk. The price currently trades at 0.6153.
Is there room to the downside?
The 0.6123 to 0.6131 is an old swing area. Below that, and traders start to focus on the lows for the year all the way down to 0.6096 and then 0.60593.
Powell had a more seriousness to his comments today, and that stronger resolve has the USD in favor. It also has weakened the stocks which leads to risk-off flows in pairs like the NZDUSD. Sellers in control.