NZD/USD Parries Losses Amid Tightening Rate Expectations

The New Zealand dollar trimmed its losses against the US dollar on Tuesday, but remained lower by 0.17% at around 0.5770 in European trading.

This came as the greenback strengthened and markets shifted further towards a Federal Reserve rate rise at Wednesday's policy decision.

The US Dollar Index (DXY) rose 0.15% to about 99.62, with rate expectations tightening after ING switched its projection to a 25bp Fed hike in September following Chair Kevin Warsh's Jackson Hole remarks and subsequent data.