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NZD/USD holds near 0.5785 ahead of Fed policy decision
NZD/USD is steady near 0.5785 as investors trim risk before the Fed meeting, with the Greenback pressured by weaker US consumer confidence and slower hiring.
FXStreet said NZD/USD was trading nearly unchanged around 0.5785, struggling to extend an earlier rebound despite a modest decline in the US dollar.
The outlet pointed to the Conference Board Consumer Confidence Index falling to 90.8 in July from an upwardly revised 92.2 in June, and cited NER Pulse data showing US private employers added an average of just 15K jobs per week over the four weeks ending July 11, indicating hiring slowed for a fifth straight week.
FXStreet added that New Zealand dollar support is coming from a sharp drop in oil prices, which can ease imported fuel costs for New Zealand, but cautious sentiment and uncertainty around Fed guidance are limiting the Kiwi recovery.
Ahead of the Wednesday Federal Reserve announcement, FXStreet said the market expects rates to be left unchanged, with investors focused on the policy statement and Chair Kevin Warsh’s press conference for signals on future adjustments.