USD edges higher as the Fed might start to discuss tapering soon; NZD and AUD found support as RBNZ may raise interest rates by September 2022

USD edged higher on Thursday, supported by comments from the Fed officials that they might start discussing tapering soon. Some sources say that, the Fed will likely scale back the bond purchasing sooner than expected if the economy continues to show massive improvement. Before the rumor gets confirmed, USD has found its support, rising over the 90 level. The 10-year benchmark yield was also up at 1.58%, receiving support from the currency.

Later today, the US will release its weekly jobless claims and Q1 GDP. On Friday, we will have the personal consumption expenditures index, which is the Fed’s favorite inflation benchmark.
NZD was up more than 1% on Wednesday and AUD was up about 0.4%, primarily due to RBNZ’s projection that interest rates will likely be raised by September 2022. RBA, however, has stressed that it will keep the current policy until 2024.