Early Wednesday, risk flows led the financial markets as investors remained hopeful for a diplomatic solution to the Russia-Ukraine issue, while the dollar remained on the back foot. The US economic calendar will include data on February retail sales and the import price index before the Federal Reserve’s key interest rate decision.

Later in the day, the US Federal Reserve will boost its policy rate by 25 basis points.

People who want to buy the NZD/USD currency pair are getting ready for the Fed to make a quick decision, which could set the rate at 0.5 percent in the near future, say, economists.

Other than the Fed’s decision, the rate of U.S. retail sales is set to fall to 0.4% from 3.8% in January.

A significant part of this success is the upcoming news of Gross Domestic Product (GDP).

On March 16, 2022, Statistics New Zealand will release the GDP figure. According to economists’ prediction, it would increase its percentage from -3.7% to 3.2% in the fourth quarter of this year.

The GDP measures New Zealand’s total value of all products and services generated. The GDP is a broad indicator of economic activity and health in New Zealand. In general, a high reading for the NZD is favorable (or bullish).

According to the graph above, two immediate support levels keep it from falling and try to drive NZD/USD forward.

Conclusion

Selling the NZD/USD pair at current levels could yield some fast gains in short-term trading, given the price action of the pair over the past few days.