Market participants now expect the Fed to raise interest rates by 25 basis points in the next three FOMC meetings, leading to an appreciation of the US dollar.
Hurricane Gabrielle is the biggest natural disaster to hit New Zealand this century. As a result, NZD/USD failed to rally even though the RBNZ interest rate rose.
The US dollar's rally continues today's bullish consolidation. But several factors hinder the continuation of the rally ahead of tomorrow's release of the FOMC minutes.
The latest US inflation data supported the US dollar exchange rate but did not trigger a significant rally or change the Fed's interest rate expectations.