The New Zealand Dollar weakens against a resilient US Dollar ahead of the FOMC meeting, with traders awaiting Fed policy cues.
The NZD/USD pair retreated for a second day, trading near 0.5770 after briefly touching 0.5785 in early Asian trade. The US Dollar remains firm, supported by geopolitical tensions and safe-haven demand amid stalled US-Iran negotiations and renewed drone attacks in the Middle East.
The Federal Reserve’s two-day policy meeting begins today, with markets expecting no change in interest rates. Attention will shift to the Fed’s statement and press conference for signals on future monetary policy, which could sway the USD and impact the NZD/USD pair.
Traders remain cautious ahead of the Fed’s announcement, limiting aggressive bets. Meanwhile, expectations of a less hawkish Reserve Bank of New Zealand stance may further pressure the Kiwi.