NZD Range-Bound Ahead of Fed Decision, Middle East Tensions

The New Zealand dollar has been trading around $0.578 in a range-bound manner as investors await the US Federal Reserve's policy decision and monitor developments in the Middle East.

Although there is a consensus for the Fed to hold interest rates steady, markets continue to price in roughly a one-third probability of a 25-basis point rate hike.

The geopolitical risks resurfaced after the US intercepted Iranian missile attacks at forces based in the region, raising the risk of a broader conflict.

Investors are also looking ahead to New Zealand's business confidence and consumer sentiment data later this week for fresh clues on the economic outlook.