The New Zealand Dollar weakens against the US Dollar amid safe-haven demand fueled by Middle East tensions and Fed policy uncertainty.
NZD/USD fell to around 0.5770 on Tuesday, extending losses as the US Dollar retained strength. Persistent geopolitical risks in the Middle East, including paused US-Iran strikes and recent drone attacks, bolstered demand for the safe-haven USD.
Investors remain cautious ahead of the Federal Reserve’s two-day policy meeting, which begins today. While the Fed is expected to hold rates steady, markets will scrutinize the statement and Chair Powell’s press conference for hints on future monetary policy. Meanwhile, US labor market data showed further cooling, with private employers adding 15K jobs weekly in early July, down from 16.5K previously.
Despite moderating hiring, the USD maintained its appeal as uncertainty over Fed policy and geopolitical developments kept risk sentiment subdued.