NZD/USD Slides as Hawkish Fed Weighs Ahead of PMI

The New Zealand Dollar (NZD/USD) is under pressure as the US dollar gains traction, driven by hawkish Federal Reserve commentary.

Momentum indicators show a bearish tone for the pair, with the Relative Strength Index (RSI) hovering around 32 and below key moving averages.

The market now assigns a 53.1% probability to at least a 25 bps Fed rate hike at the October meeting, up from 48.7% a week earlier, as policymakers signal further tightening may be needed to combat inflation risks.