Dollar Falls as Traders Gear Up for Fed Rate Decision

The Australian and New Zealand dollars have slipped in value as traders prepare for the Federal Reserve's policy decision. Markets are pricing in a 92% chance of a quarter-point hike, which could put upward pressure on the US dollar. This, in turn, can make it more expensive for Australia and New Zealand to import goods and services.

AUD/USD support near $0.71085 is being closely watched, while NZD/USD has already broken through $0.5762. If the kiwi continues to fall, it could trigger stop-loss orders and further downward momentum.

Pepperstone, an online trading firm, warns that even if a Fed move is mostly priced in, the real market fight shifts to the details of the policy decision. The rate outlook, fresh economic forecasts, and the chair's tone at the press conference can all impact markets and currencies.