NZD/USD trades near 0.5785 ahead of Fed’s monetary policy announcement
The NZD/USD pair is holding steady around the 0.5785 area, struggling to extend its earlier recovery despite a modest decline in the US Dollar.
The pair rebounded from recent lows but lost momentum as investors avoided large positions ahead of the Fed’s decision. The US private sector added an average of only 15K jobs per week during the four weeks ending July 11.
The New Zealand Dollar receives some support from the sharp decline in oil prices, as lower energy costs improve the outlook for New Zealand. However, cautious market sentiment and uncertainty surrounding the Fed’s guidance continue to limit the Kiwi’s recovery.