• NZD/USD pops on a troubled US Dollar hit by dovish tilt at the Fed.
• Markets smell a pivot coming and price in lower rates, weighing in the greenback. 

NZD/USD has popped on the back of the market smelling a pivot at the Federal Reserve with the Fed terminal rate has fallen to under 4.9% amid chair Powell's comments. At the time of writing, NZD/USD is trading at 0.6500 and has rallied from a low of 0.6416 to a high of 0.6505 so far. 

The Federal Reserve's dovish tilt, despite inflation, ''running very hot'', has weighed heavily on the greenback as traders move into risk-positive asset classes, such as commodities and stocks, supporting the high beta NZD.  The Federal has increased interest rates for the eighth time in a year but slowed its pace to a quarter of a point in a nod to an improved inflation outlook. There was an initial bid in the greenback but it soon turned sour for the US Dollar bulls and the sell-off gathered pace as the cracks in Fed's chairman's, Jermoe Powell, comments started to reveal a dovish shift at the Fed.