NZD/USD moves to fresh highs of the week above 0.7240

• NZD/USD has seen significant upside in recent trade as a function of a weakening USD dollar.
• Markets are currently watching an online conversation in which Fed Chair Powell is participating with Princeton University.

NZD/USD has seen significant upside in recent trade as a function of a weakening USD dollar. No particular theme started off the move, which has seen the Dollar Index (DXY) drop back towards the 90.10 mark. At present, the pair trades about 0.9% higher or up by around 60 pips and has crossed above the previous high of the week at 0.7240 in recent trade.

Fed Chair Powell speaking now

Markets are currently watching an online conversation in which Fed Chair Powell is participating with Princeton University. The Fed Chair is yet to say anything meaningful regarding policy (he has spent most of the conversation justifying the Fed’s recent shift to average inflation targeting) and has otherwise reiterated the Fed’s known policy stance, but his generally dovish tone does seem to be calming some nerves and weighing on the US dollar. Markets are particularly interested in what the Fed Chair will have to say regarding when the bank might start reducing the monthly pace of its asset purchase programme.