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Forex

NZD/USD Bounces Off Two-Month Low Amid Fed Decision Anticipation

Guavy AI Editorial Team
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USD NZD
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The New Zealand dollar (NZD) bounced back from its lowest point in over two months, but it's still vulnerable near the mid-0.5700s level.

Traders are waiting with bated breath for the Federal Reserve's policy decision later today, which could have a significant impact on the NZD/USD pair.

The US dollar (USD) pulled back after reaching a two-week high as bulls took profits off the table, creating a tailwind for the NZD/USD pair.

However, oil-driven inflation risks and escalating tensions in the Middle East are supporting elevated US bond yields and the safe-haven greenback, capping the currency pair's gains.

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