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NZD/USD holds near 0.5785 as traders wait for the Fed
The US dollar softened after the Conference Board consumer confidence index fell to 90.8 in July, while the Fed is expected to hold rates unchanged Wednesday.
NZD/USD traded nearly flat around 0.5785, struggling to build on an earlier recovery as investors reduced risk ahead of the Federal Reserve’s Wednesday monetary-policy announcement, according to FXStreet. The pair had rebounded from recent lows but lost momentum as traders avoided taking larger positions before the Fed’s guidance.
FXStreet cited weaker US sentiment data as a key factor pressuring the Greenback, pointing to the Conference Board Consumer Confidence Index declining to 90.8 in July from an upwardly revised 92.2 in June. It also noted that hiring slowed, with US private employers adding an average of only 15K jobs per week during the four weeks ending July 11, based on the NER Pulse report.
While New Zealand dollar support came from a sharp drop in oil prices, the Kiwi still faced limits from cautious market sentiment and uncertainty around the Fed. FXStreet said investors will focus on the policy statement and Chair Kevin Warsh’s press conference for signals on future adjustments, with a hawkish message seen as potentially strengthening the US dollar and weighing on NZD/USD.
On the technical side, FXStreet reported NZD/USD around 0.5788 on the four-hour chart, hovering just above the 20-period and 100-period simple moving averages near 0.5783 and 0.5787. It also identified nearby resistance around 0.5791 and 0.5799, while support was reinforced near 0.5785 and 0.5787, with a deeper break below about 0.5779 potentially undermining the short-term base.