NZD/USD Steadies Ahead of Expected Fed Rate Hike

The New Zealand Dollar has steadied against the US Dollar ahead of the Federal Reserve's monetary policy decision on Wednesday. As investors hold back from taking large positions, the NZD/USD pair trades around 0.5755, barely changed from its session high after rebounding from a two-month low at 0.5737.

Despite some profit-taking on the US Dollar, which recently revisited a two-week high, caution prevails ahead of the Fed announcement. Markets widely expect the central bank to raise its benchmark interest rate for the first time since 2023 in response to stubbornly high inflation and rising global borrowing costs.