The NZD/USD pair slipped closer to 0.5750 as market participants positioned themselves ahead of the Federal Reserve’s rate decision. The decline reflects a cautious sentiment as traders assess the Fed’s next move amid recent inflation data and global economic uncertainties.
The U.S. dollar maintained strength, supported by expectations that the Fed will leave interest rates unchanged while reiterating its commitment to a higher-for-longer policy stance. This weighed on the New Zealand dollar, which faces additional pressure from softer commodity prices and weaker economic prospects in China, a key trading partner. Market focus remains on the Fed’s language about future rate hikes, which could further influence the currency pair’s direction.
