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NZD/USD slips as USD firm ahead of the FOMC meeting
The Fed is expected to hold rates unchanged on Wednesday, with traders looking to the statement and press conference for clues on the future policy path.
FXStreet reports that NZD/USD edged lower for a second straight day after a modest uptick earlier in the session, with spot prices trading around 0.5770 to 0.5765, slightly above last week’s swing low.
The dollar held a bullish undertone as investors weighed geopolitical uncertainty tied to the US pause in bombing against Iran after roughly two weeks of strikes, along with follow-on reports of drone attacks involving Saudi Arabia, Jordan, and Iraq.
FXStreet adds that expectations for the Reserve Bank of New Zealand to deliver another rate hike in September could offer support to the kiwi, but that traders are refraining from aggressive positioning ahead of the highly anticipated two-day FOMC meeting.
With the Fed decision due Wednesday, the focus will be on the policy statement and post-meeting press conference, as guidance on the future rate path is expected to influence the Greenback and, in turn, drive NZD/USD.