Forex News

• The Indian Rupee gains against the US Dollar at the start of the week.
• Sell-off in US AI-related stocks continues to weigh on the US Dollar.
• The RBI announces that it will infuse up to 1 trillion rupees through variable rate repo operation.

The Indian Rupee (INR) extends its positive momentum after last week’s outperformance against the US Dollar (USD) on Monday. The USD/INR pair declines to near 94.80 as continuous sell-off in United States (US) Artificial Intelligence (AI)-related stocks is keeping the US Dollar under pressure.

As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, is almost flat at around 101.80, but is close to its over two-week low of 101.57 posted on Friday.

Dollar softens as AI debt jitters reshape safe-haven dynamics

Analysts at ING argue that the latest moves in foreign exchange offer “a preview of how currencies will perform during a big AI correction.” They note that, rather than rallying as a traditional safe haven, “those currencies most linked to AI chip shipments, such as the Taiwanese dollar and the Korean won,” coming under the heaviest pressure. ING adds that investors are likely to “keep an eye on the debt of the big AI issuers today, and any further sell-off could weigh on the dollar.”

The ongoing weakness in the US Dollar amid correction in AI stocks has forced market experts to reprice US Dollar’s outlook.

Strategists at Scotiabank highlight that the US Dollar’s recent downturn has gathered momentum, describing DXY price action as “clearly bearish with an acceleration of the bearish reversal from Wednesday’s local peak.” They note that “the break below 102 is extending,” adding that they “see little in terms of support ahead of 101,” underscoring the vulnerability of the index as it grinds lower toward that next technical floor.

Meanwhile, the Indian Rupee continues to gain strength from Reserve Bank of India’s (RBI) liquidity infusions and new measures announced this month.

According to a Reuters report, the Indian central bank will conduct a seven-day variable rate repo operation to infuse liquidity on Monday, the Reserve Bank of India said. The RBI will infuse up to 1 trillion rupees ($10.53 billion) through the operation, which traders said is aimed at helping lenders tide over tax outflows amid tighter daily cash reserve requirements.

This month, the RBI announced various measures to curb the US Dollar’s demand, which led to a sharp rally in the Indian currency last week.

Analysts at Societe Generale said in a note that these measures include “the reintroduction of a dedicated oil import window, tighter restrictions on corporate hedging, limits on uncovered FX transactions, a ban on rebooking cancelled derivatives, and fresh open market operation (OMO) bond sales,” underscoring the central bank’s determination to stabilise the currency through both FX-market tools and balance-sheet operations.

Technical Analysis: USD/INR stays below 20-day EMA

In the daily chart, USD/INR trades at 94.9655, extending a bearish tone as spot holds below the 20-period exponential moving average (EMA) at 95.6968, which now acts as the first meaningful topside barrier. The Relative Strength Index (RSI) sits near 34 in negative territory, hinting that downside momentum persists but is approaching oversold conditions that could slow the recent decline rather than reverse it outright.

On the topside, immediate resistance is located at the 20-day EMA around 95.70, and sellers are likely to defend this level while it caps corrective rebounds. With no nearby technical supports derived from moving averages or Fibonacci levels beneath current price in this dataset, the pair remains vulnerable to further slippage, and any recovery would need a sustained break above the 20-day EMA to ease the current bearish pressure.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

OCBC’s Sim Moh Siong and Christopher Wong argue that Artificial Intelligence (AI) remains a net tailwind for the US Dollar (USD), supporting US growth, yields and asset returns, but recent AI financing concerns have exposed two-way risk. They see the latest USD softness as temporary and still expect the Dollar to stay supported as long as US AI capex and growth remain durable.

AI tailwind but rising downside risks

"AI has been an important USD tailwind. Strong investment has supported US growth and equities, while adding to inflationary pressures, financing demand and Treasury yields. These forces have reinforced the relative appeal of US assets and the USD."

"The USD does not always benefit from risk aversion. When the shock originates in the US, as with recent AI financing concerns, weakness in US assets can overwhelm the USD’s traditional safe-haven appeal."

"There is also an FX hedging angle. If overseas investors become less confident that the USD will hedge declines in their US equity holdings, they may increase FX hedge ratios. That could reinforce USD selling when US equities come under pressure."

"The broader message is about two-way risk. The AI boom remains supportive of the USD, but recent price action shows that the relationship can reverse when the AI narrative wobbles. The USD can still benefit from AI, but it is no longer a one-way trade."

"For now, however, we expect the USD to remain well supported. We see the latest AI jitters as a bump, not a break in the investment cycle. As long as US AI capex remains durable and continues to support growth, yields and asset returns, AI should remain a net tailwind rather than a headwind for the USD."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

• Canadian inflation is expected to rise in September.
• The underlying inflation gauges are also expected to gather some steam.
• The Canadian Dollar has been trading in a choppy fashion vs. the US Dollar.

Canada’s September Consumer Price Index (CPI) figures will be the focus of attention on Monday. Indeed, Statistics Canada data will provide markets with an update on price pressures ahead of the Bank of Canada’s (BoC) October 28 gathering, when officials are expected to keep the interest rate steady at 2.25%, broadly in line with analyst consensus.

This time, economists expect the headline CPI to pick some upside traction at 3.2% YoY and to rise by 0.2% on a monthly basis, up from the 0.1% contraction recorded in August. The BoC’s core measure (which strips food and energy costs) is forecast to rise by 0.2% inter-month, while remaining steady at 2.4% from a year earlier.

In the current context of heightened geopolitical volatility, crude Oil dynamics are likely to keep inflationary pressures anything but abated, while the lack of progress on the tariffs front is expected to also add to the sentiment.

Still around data, the BoC’s preferred gauges of underlying inflation, CPI-Common, Trimmed Mean, and Median, cooled somewhat in August to 2.6%, 1.9%, and 2%, respectively.

What can we expect from Canada’s inflation rate?

Inflation remained steady in August, although market participants mostly pencil in a pick-up in inflationary pressure due to the persistent tensions in the Middle East and the accompanying uptrend in crude Oil prices.

The BoC delivered a cautiously hawkish hold on September 2, leaving rates unchanged as economic slack and lingering trade uncertainty continue to argue for patience. Still, policymakers appear increasingly uneasy about the inflation outlook. Governor Tiff Macklem’s warning that several rate hikes could be needed suggests renewed tightening is firmly back on the table, particularly if Oil prices remain elevated or inflationary pressures begin to spread beyond energy.

So far, market participants expect nearly 23 basis points of tightening by year-end, which is roughly a quarter percentage point.

When is the Canada CPI data due, and how could it affect USD/CAD?

Markets will fully focus on Monday at 12:30 GMT, when Statistics Canada publishes September’s inflation prints. If inflation falls in line with the latest results from its US peer, bets on further rate hikes should likely increase, providing fresh legs for the Canadian Dollar (CAD).

Pablo Piovano, Senior Analyst at FXStreet, notes that USD/CAD has been navigating a downward path since hitting yearly tops near the 1.4300 yardstick earlier in the month.

Piovano points out that the pair remains well above its critical 200-day SMA in the 1.3880 zone, suggesting that further gains are possible in the near term.

If bulls regain control, the next key level is expected at the 2026 top at 1.4299 (October 9 and 14), before the March 2025 peak at 1.4542 (March 4). Further up emerges the 2025 ceiling at 1.4792 (February 3), Piovano adds.

“On the opposite direction, the resurgence of the bearish trend could prompt the pair to revisit its provisional support levels at the 100-day and 55-day SMAs at 1.4035 and 1.4000, respectively. South from here awaits the critical 200-day SMA," he adds.

“Momentum keeps favouring further gains,” he notes, signalling that the Relative Strength Index (RSI) hovers around the 54 level, while the Average Directional Index (ADX) beyond 37 suggests a solid trend.

• Gold attracts some buyers on Monday amid receding October Fed hike bets and sliding bond yields.
• Traders still see around a 90% chance of a December Fed rate hike, which caps the precious metal.
• Geopolitical tensions lend support to the safe-haven USD, which further keeps a lid on the commodity.

Gold (XAU/USD) maintains its bid tone heading into Monday’s European session, though it remains stuck in an over three-week-old range held and below the $4,200 mark. US Federal Reserve (Fed) Chair Kevin Warsh’s unwillingness to offer fresh cues on further policy moves forced investors to price out the possibility of policy tightening later this month. Moreover, the recent sharp pullback in US government bond yields from multi-year highs, which dragged the US Dollar (USD) to a two-week low on Friday, acts as a tailwind for bullion.

Fed blackout looms as Warsh’s silence cuts October hike odds

Deutsche Bank’s strategists note that with the Fed about to enter its blackout period ahead of the October 27–28 meeting, Kevin Warsh declined to push back against market rate expectations, stressing that he doesn’t “prejudge meetings” even after this week’s hotter inflation data. According to the bank, markets interpreted the absence of a more hawkish tone as a positive surprise, with “October hike pricing dropping to around 15% from roughly 30% as he spoke,” while “S&P and Nasdaq futures are both +0.15% higher having been negative for most of the session before he spoke,” and “Stoxx futures are +0.68% higher.”

Meanwhile, last week's hotter-than-expected US inflation reports lifted market bets for an imminent Fed rate hike. According to CME Group's FedWatch Tool, traders are pricing in over a 90% chance that the US central bank will raise borrowing costs in December. Furthermore, energy-driven inflation fears underpin prospects for further policy tightening by the Fed. In fact, crude oil prices surged to a nearly one-month high on Friday as escalating hostilities in the Middle East and Eastern Europe kept supply risks elevated.

Three tankers were also damaged in the Strait of Hormuz over the weekend as Iran’s IRGC navy maintained that the waterway remained closed and vessels could pass only with its authorization. In Europe, Ukrainian attacks sparked fires at an oil export terminal and a storage depot in St. Petersburg on Sunday, as Kyiv launched more than 1,000 drones at Russia in one of the war’s largest aerial assaults. Moreover, clashes between Saudi Arabia and the Iran-backed Houthi rebel group in Yemen have shown little sign of abating.

Adding to this, a secretary of Iran’s Supreme National Security Council, Mohsen Rezaei, warned that Tehran has prepared a new retaliation plan for any renewed US-Israeli attack. This keeps the geopolitical risk premium firmly in play, acting as a tailwind for crude oil prices and allowing the safe-haven buck to recover further from a two-week low. This might keep a lid on any further appreciating move for the Gold, making it prudent to wait for strong follow-through buying before positioning for further gains.

XAU/USD 4-hour chart

Technical Analysis

The range-bound price action could be categorized as a bearish consolidation phase against the backdrop of a fall from the $4,700 neighborhood, touched in August. Moreover, the XAU/USD pair remains decisively below the 200-period Simple Moving Average (SMA) on the 4-hour chart, suggesting that recent gains are still unfolding within a broader corrective phase rather than a confirmed uptrend.

Meanwhile, the Relative Strength Index (14) at 55.1 leans modestly to the bullish side, and the Moving Average Convergence Divergence (MACD) stays above zero with a positive, though slightly softening, profile. Nevertheless, acceptance above the $4,200 mark and a move beyond the trading range barrier, around the $4,215-$4,220 region, is needed to ease the prevailing downside pressure and open the way for a more constructive medium-term outlook.

On the downside, the $4,150-$4,145 area could offer immediate support ahead of the $4,100 round figure and last week's swing low, around the $4,075-$4,065 region. A convincing break below the latter would make the Gold vulnerable to challenge the year-to-date (YTD) low, near the $3,957 zone, touched in July.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

• XAG/USD maintains a moderately bullish tone, but bulls are failing to find acceptance near the $58.00 area.
• Precious metals are drawing some support from the US Dollar's weakness on Monday.
• Market expectations that the Fed will stand pat at next week's meeting are weighing on the USD.

Silver (XAG/USD) has entered the week with a moderately bullish tone, favoured by a soft US Dollar (USD), but the precious metal remains trading within previous ranges, with bulls, so far, capped below the 0.5800 area.  

The US Dollar Index (DXY), which measures the value of the Greenback against a basket of six majors, edges down less than 0.1% on Monday, with the market anticipating a pause at next week’s Federal Reserve (Fed) monetary policy meeting.

US inflation figures released last week confirmed that higher energy prices are boosting consumer prices to levels well above the central bank’s target for price stability. Fed officials, however, requested more time to assess the economic impact of September’s rate hike, and Chair Kevin Warsh refused to give any forward guidance.

Futures markets are pricing in only a 12% chance of a rate hike next week, down from nearly 60% one month ago, according to data by the CME’s FedWatch Tool. This is likely to pose a heavy weight for US Dollar rallies.

Technical Analysis: Bulls face a cluster of resistances above 0.5800

XAG/USD holds gains at $57.74 at the time of writing, after bouncing from three-month lows sub-$56.00. Momentum indicators in the four-hour chart, however, show a neutral stance, with the Relative Strength Index (14) still below the key 50 level and the Moving Average Convergence Divergence (MACD) marginally positive at 0.18, which suggests that the pair would need additional support to break overhead resistance.

Friday's high, at the $58.00 area, is keeping upside attempts limited so far, while the October 8 low, at $58.50, and the descending trendline from mid-September highs, now at $59.05, are likely to pose additional challenges for bulls. A clear break above those levels would confirm a trend shift and set the focus on the October 13 high, net $60,70.

Downside attempts, on the contrary, are likely to find support at the session lows near $56.80, ahead of last week's lows around 55.40.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

• AUD/USD trades higher at around 0.6980 as the Australian Dollar outperforms.
• Market participants doubt that the RBA will hike interest rates again in November.
• The US Dollar weakened last week due to correction in US AI-related stocks.

The Australian Dollar (AUD) outperforms its currency peers at the start of the week, trading almost 0.5% higher at around 0.6980 against the US Dollar (USD) in the European trade. The antipodean gains even as market participants doubt whether the Reserve Bank of Australia (RBA) will deliver one more interest rate hike this year.

So far in 2026, the RBA has delivered four interest rate hikes of 25 basis points (bps), pushing the Official Cash Rate (OCR) to 4.6%.

What weighs concerns on hawkish RBA bets

Analysts at Rabobank highlight a weaker tone in Australia’s latest labour figures, noting that “the unemployment rate printing at 4.6% and a contraction of almost 40 thousand jobs” has effectively “erasing the job gains seen in July.”

According to the RBA Rate Tracker, there is an almost 82% chance that the RBA will leave its OCR unchanged in the next policy meeting in November.

Meanwhile, the US Dollar trades almost flat at the start of the week. The US Dollar faces significant selling pressure last week amid a significant correction in the United States (US) Artificial Intelligence (AI) stocks.

AUD/USD Technical Analysis

In the daily chart, AUD/USD trades at 0.6976, keeping a bearish near-term tone as spot remains capped beneath the 20-period exponential moving average (EMA) at 0.6993. The formation of the Head and Shoulder (H&S) chart pattern also supports the bearish bias whose neckline near 0.6900 is acting as key support for the pair.

The pair has been unable to reclaim the short-term EMA metric since its recent slide, and the Relative Strength Index (RSI) at 44 stays below the neutral 50 line, hinting that downside pressure still outweighs buying interest despite the latest attempts to stabilize.

On the topside, immediate resistance is located at the 20-day EMA around 0.6993, and a daily close above this barrier would be needed to ease the current bearish bias and open the door to a more sustained recovery phase. On the downside, the neckline of the H&S formation near 0.6900 is the key support zone.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

ING’s Frantisek Taborsky highlights Hungary’s draft budget as key for regional bonds, with much optimism already priced on a deficit below 5% of GDP. He expects the National Bank of Hungary to keep rates at 5.50%, the Central Bank of Turkey to resume cuts to 36.00%, and EUR/RON to stabilise around 5.340, while another Czech rate hike is seen in November.

Hungary, Turkey and Romania drive regional moves

"Today’s focus is Hungary’s draft budget for next year. Hungarian bonds have rallied strongly in recent weeks on growing expectations that the plan will target a deficit below 5% of GDP. However, much of the good news now appears priced in, creating downside risk if the government falls short of expectations. Even so, the broader outlook for bonds remains positive, particularly compared with this year’s 7.0-7.5% deficit, and we expect investors to buy any dip following a sell-off."

"The region’s first economic releases arrive on Tuesday, with Polish wage, PPI and industrial production data. The main focus, however, will be the National Bank of Hungary meeting. We expect rates to remain unchanged at 5.50%, leaving attention on forward guidance. Although the central bank has identified the fiscal plan as a key factor for future easing, we believe cuts remain premature and, global conditions permitting, are unlikely before the end of this year or next year."

"On Thursday, we expect the Central Bank of Turkey to resume its easing cycle for the first time since the US-Iran conflict began, cutting rates by 100bp to 36.00%. September’s inflation data provided a positive signal, while developments in investment funds point to downside risks for the economy in the final quarter. Although crowded long TRY positions offer less and less carry, they remain popular in emerging markets, and we expect this demand to persist in the coming months despite renewed rate cuts."

"Beyond the scheduled events, we are monitoring political developments in Romania, where the new government appears highly likely to win a confidence vote. This should help stabilise EUR/RON after its decline late last week, and we expect the pair to settle around 5.340. In the Czech Republic, the Czech National Bank may offer its first signals ahead of the November meeting, when we expect another rate hike."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Deutsche Bank strategists highlight renewed volatility in US equities as the anniversary of Black Monday coincides with a sharp late-Friday sell-off in the S&P 500, followed by a rebound in S&P and Nasdaq futures. They note concentrated weakness in AI-related names and semiconductors, with credit markets showing distress in that sector and key tech indices posting sizable weekly declines.

AI sector drives US equity stress

"39 years ago today we woke up to the origins of what would forever be known as Black Monday, where the Dow fell -22.6% on the day. It’s rare the anniversary falls on a Monday so it’s a more memorable one today. The late US trading session on Friday almost felt people were worried we'd get a repeat today as the S&P fell from flat just before the European close to -1.09% by the US one. However, this morning we are seeing a bounce with S&P (+0.79%) and Nasdaq (+1.29%) futures making up most of their late Friday losses. "

"Clearly the main nervousness last week was around AI-related names, with credit markets starting to show some distress in that sector. The Philly semiconductor index was down -11.41% last week (-3.83% Friday), whilst the NASDAQ was down -4.48% (-2.14% Friday)."

"At the heart of the sell-off was CoreWeave, which was down -25.21% last week (-11.91% Friday), whilst their 5yr CDS was up +225bps on the week to 1128bps with their cash bonds trading at around a 15% yield. Meanwhile, Oracle’s share price was down -9.31% (-4.64% Friday), and their 5yr CDS was up +44bps on the week to 300bps. "

"Asia has started the week relatively calm with the KOSPI (+0.55%) and S&P/ASX 200 (+0.32%) both trading higher, while the CSI 300 (+0.09%) and Shanghai Composite (+0.16%) are just above flat. The Nikkei (-0.73%) is the region’s weakest performer, extending losses after falling -5.4% last week as technology stocks came under heavy pressure."

"Elsewhere, Indonesia’s benchmark stock index is down more than 5% to its lowest level in six years, as concerns over the potential MSCI downgrade we discussed on Friday continues to heighten fears of further foreign investor outflows. The index is down over -16% in these past two sessions."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

• USD/JPY steadies near 158.00 in Monday’s early European session.
• BoJ’s Governor says underlying inflation is "quite close" to the central bank's 2% target.
• Fed Chairman Warsh says he does not "prejudge meetings.

The USD/JPY pair trades on a flat note around 158.00 during the early European session on Monday. Traders scale back Federal Reserve (Fed) rate hike bets despite hot US inflation data. The Japan’s National Consumer Price Index (CPI) inflation data will take center stage later on Friday.

Bank of Japan (BoJ) Governor Kazuo Ueda said on Monday that underlying inflation is "quite close" to the central ‌bank's 2% target, with strong global AI demand adding to inflationary pressure from a tight job market, signalling scope for further rate increases.

Ueda added that lifting interest rates at an appropriate pace would help avoid spikes in bond yields. Many market players expect the Japanese central bank to leave interest rates unchanged at 1.25% but drop hints that leave open scope for a hike to 1.5% as ‌early as December, according to Reuters.

At the IMF annual meetings in Bangkok on Friday, Fed Chair Kevin Warsh offered no clues about future rate decisions. “We removed a dose of accommodation about a month ago,” said Warsh. “I don’t prejudge meetings. I don’t believe in saying now what I might do at the meetings that we have in the balance of this year,” he added.

Fed funds futures are pricing an implied 83.9% chance that the Fed will hold rates steady at its next two-day meeting on October 28, little changed from Friday, according to the CME Group's FedWatch tool.

BoJ tone turns firmer as Ueda flags inflation progress and yield risks

Analysts at Danske Bank highlight a firmer tone from the Bank of Japan, noting that Governor Kazuo Ueda now judges underlying inflation to be "quite close" to the 2% target, supported by tight labour markets and strong global AI demand as sources of price pressure. Danske adds that Ueda "warned that failing to raise rates at an appropriate pace could push long-term bond yields higher," underscoring the risks of moving too slowly. Looking ahead to the BoJ’s next meeting, which concludes on 30 October 2026, the bank points out that markets expect policy rates to remain at 1.25%, but will be watching closely for any guidance that keeps a hike to 1.5% as early as December "on the table."

Ueda leans mildly hawkish as inflation loop firms and JGB guidance stays cautious

FXS Speechtracker at 7/10 is slightly below Ueda’s 7.4/10 average, but the emphasis on “underlying inflation near 2%” and a “positive loop” of wages, prices, and robust global demand marks a mild hawkish tilt versus past caution. The focus on anchoring core inflation near 2%, demand-led price gains, and a tight labor market suggests the Bank of Japan is more confident that the 2% goal is becoming sustainable, which is Yen-supportive at the margin.

At the same time, Ueda stresses no shift in the fundamental bond taper approach and refuses to preannounce emergency JGB operations, signaling a desire to let long-term yields rise “steadily” alongside any future policy-rate hikes. The message that accommodative conditions will persist, but that miscalibrated policy could push long-term rates higher, frames a gradual normalization path that can underpin the Yen while keeping JGB volatility contained, limiting an immediate bullish impulse for the currency.

Technical Analysis: Negative tone of USD/JPY remains intact under the 100-day SMA

In the daily chart, USD/JPY holds a capped tone as spot remains below the 100-day simple moving average (SMA) despite stabilizing above the 20-day Bollinger SMA. The pair has rebounded from the lower band, but the upper band and the nearby 100-day SMA overhead suggest rallies are likely to meet supply, while the Relative Strength Index (RSI) at 52.35 points to only modest, neutral-to-slightly positive momentum.

On the topside, immediate resistance aligns first at the upper Bollinger band near 158.85, followed by the 100-day SMA at 159.45, a level that would need to be reclaimed to ease the broader downside pressure. On the downside, initial support is seen at the 20-day Bollinger SMA around 158.00, with a break exposing the lower band support at 157.10, where a deeper pullback could attempt to stabilize.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

• NZD/USD holds recent gains around 0.5660, close to late September highs around 0.5690.
• Upbeat data from China has offset weak Trade Balance data from New Zealand.
• The US Dollar remains on the defensive with investors bracing for a Fed pause in October.

The New Zealand Dollar (NZD) stands its ground against the US Dollar (USD) at the start of the week, as positive data from China offset the downbeat New Zealand Trade Balance earlier in the day. The NZD/USD pair maintains its immediate bullish trend, trading at 0.5660, just below three-week highs and with bulls looking at the late September highs at 0.5990.

Data from China, New Zealand’s main trading partner, revealed that the country’s Gross Domestic Product (GDP) grew at a 4.5% pace in the third quarter, beyond the second quarter’s 4.3% growth and beating expectations of a 4.4% increase. Beyond that, Retail Sales rose 1.1% in September, more than twice the market consensus, easing concerns about the country’s weak domestic demand.

In New Zealand, on the contrary, the trade deficit widened to NZD 1.97 billion in September, from NZD 1.54 billion in August. Also on Monday, the NZ Business PSI, a gauge measuring the services sector’s performance, showed a moderate slowdown, to 50.9 in September from a downwardly revised 51 in the previous month, with businesses showing concern about political uncertainty ahead of the elections and the higher cost of living.

The US Dollar has opened the week in the same bearish trend seen in the previous one. US inflation figures revealed that prices remain well above the Federal Reserve's (Fed) target. Central bank policymakers, however, requested some more time to assess the impact of September's rate hike, which hints at a pause in the October 29-29 monetary policy meeting.

Technical Analysis: Bulls remain in control while above 0.5930

NZD/USD trades at 0.5659, holding a constructive near-term bullish bias as it consolidates above previous highs in the 0.5630-0.5640 area. Momentum conditions favor the upside, with the Relative Strength Index hovering in the low 60s and the Moving Average Convergence Divergence (MACD) line holding in positive territory, which together suggest buyers retain control.

The immediate target is the September 24 and 28 top at 0.5660. Further up, the September 22 high, at the 0,5750 area, would come into focus. On the downside, a bearish reversal below the 1.5130 area (October 6, 14 and 15 highs) would increase pressure towards last week's lows at the 0.5590 and 0.5565 areas.

(The technical analysis of this story was written with the help of an AI tool. Know more.)