* New Zealand RBNZ Interest Rate Decision 4.75%,4.75%forecast, 5.25% previous
EUR/USD: The euro dipped against the dollar on Wednesday as investors assessed the interest rate outlook for the United States. Later in the day, investors will analyze minutes from the Federal Reserve's September meeting, which will focus on comments about what looked to be a worsening job market, leading to consensus among all but one policymaker on a 50-basis point cut. The September U.S. Consumer Price Index report, which is set to be released on Thursday, is expected to be the week's most significant data point.The euro was down 0.07% at $1.0973. Immediate resistance can be seen at 1.1005(38.2%fib), an upside break can trigger rise towards 1.1053(50%fib).On the downside, immediate support is seen at 1.0944(23.6%fib), a break below could take the pair towards 1.0920 (Lower BB).
GBP/USD: Sterling fell on Wednesday as investors modified their expectations for the Federal Reserve's interest rate path. Friday's stronger-than-expected US payrolls report fuelled predictions that the Fed will reduce its aggressiveness in decreasing interest rates. Bets for another jumbo cut in November have been taken off the table after the latest nonfarm payroll data indicated a more resilient picture.Markets now have about an 85% chance of a quarter basis point reduction priced in, as well as a slim probability the Federal Reserve will leave rates unchanged, the CME FedWatch tool showed. Immediate resistance can be seen at 1.3127(38.2%fib), an upside break can trigger rise towards 1.3188(50%fib).On the downside, immediate support is seen at 1.3064(23.6%fib), a break below could take the pair towards 1.3000(Psychological level).
NZD/USD: The New Zealand currency sank to a seven-week low on Wednesday as the RBNZ decided cut rates by 50 basis point. The Reserve Bank of New Zealand concluded its latest policy meeting by lowering the official cash rate to 4.75%, following a quarter-point cut in August.Markets, who had already priced in a nearly likely half-point cut, are now leaning toward another similar move in November, with roughly 80% of that assumption factored in. Investors responded bysending the kiwi currency down 0.6%, to $0.6103.Immediate resistance can be seen at 0.6116(38.2%fib), an upside break can trigger rise towards 0.6142 (Daily high).On the downside, immediate support is seen at 0.6078 (23.6%fib), a break below could take the pair towards 0.6040(Lower BB).
USD/JPY: The dollar steadied against the yen on Tuesday as investors assessed the interest rate outlook for the United States.Investors are now looking forward to US September inflation data, as well as minutes from the Fed's recent meeting, which will be released later on Wednesday, to gain insight into the probable direction of interest rates. At GMT 06:26, the pair was trading up 0.26% at 148.58, rebounding from over night low at147.50 . The dollar index , which measures the greenback against a basket of currencies, edged up 0.11% to 102.6 .Strong resistance can be seen at 148.24(Daily high), an upside break can trigger rise towards 149.18(23.6 %fib). On the downside, immediate support is seen at 147.61(38.2 %fib), a break below could take the pair towards 147.00(Psychological level).
Equities Recap
Japan's Nikkei share average rose on Wednesday, with tech stocks tracking their U.S. peers higher.
Oil prices steadied in Asian trading on Wednesday, as traders weighed uncertainty surrounding developments in the Middle East conflict against continued bearish fundamentals.
Brent crude futures rose 11 cents, or 0.14%, to $77.29 a barrel by 0223 GMT. U.S. West Texas Intermediate futures rose 3 cents to $73.60 a barrel.
Gold prices were subdued on Wednesday as investors strapped in for minutes from the Federal Reserve's latest policy meeting for insights into the U.S. central bank's interest rate trajectory.
Spot gold was little changed at $2,620.50 per ounce, as of 0514 GMT, after hitting a more than two-week low in the previous session. U.S. gold futures edged 0.1% higher to $2,639.00.