NZD/USD Traders Eye Fed Decision as Pair Holds Steady

The New Zealand Dollar (NZD/USD) has been trading nearly unchanged around the 0.5785 area on Tuesday, struggling to extend its earlier recovery despite a modest decline in the US Dollar.

The pair rebounded from recent lows but lost momentum as investors avoided large positions ahead of Wednesday's Federal Reserve monetary-policy announcement.

The Greenback came under pressure after the Conference Board Consumer Confidence Index declined to 90.8 in July from an upwardly revised 92.2 in June, and US private employers added an average of only 15K jobs per week during the four weeks ending July 11, according to the NER Pulse report.

The New Zealand Dollar receives some support from the sharp decline in oil prices, as lower energy costs improve the outlook for New Zealand, which relies heavily on imported fuel.