• The kiwi loses steam at 0.5940 and returns to previous levels at 0.5860.
• The US dollar picks up supported by Fed Powell's hawkish comments.
• A dovish-tilted FOMC statement sent the USD tumbling.

The New Zealand dollar has given away all the ground taken immediately after the release of FOMC’s decision, with the US dollar picking up, supported by Fed President Powell’s comments at the press release.

Investors punished the US dollar after the release of the FOMC's statement, which sent the kiwi to five-week highs at 0.5940, before returning to previous levels in the mid-range of 0.5800 as Powell’s press release goes on.

The dollar picks up on the back of Fed Powell’s comments

The greenback has bounced up strongly with Fed President Jerome Powell taking a more hawkish stance to offset the negative impact of a dovish monetary policy statement.

Jerome Powell has denied the idea that the bank might have overtightened and assured that economic data suggests that “we may eventually move to higher levels than we anticipated at the September meeting”, which has eased expectations of a dovish pivot in December.

Regarding the next meeting, Powell assured that no decision has been taken yet and that the time to slow the pace of rates could be ass soon as December or at February’s meeting.

Previously, the US dollar dropped against its main rivals, after the FOMC statement affirmed that  the pace of future rate hikes will be decided considering “cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”

Technical levels to watch