NZD/USD Under Pressure Ahead of Fed Rate Hike Decision

The New Zealand Dollar (NZD) has partially recovered from its early losses against the US Dollar (USD), but remains under pressure. As of Tuesday's European trading session, the NZD/USD pair trades at around 0.5770, down 0.17% from earlier levels.

Economists at ING have revised their view to a 25bp Federal Reserve rate hike in September following Chair Kevin Warsh's address at the Jackson Hole symposium. They believe this decision is justified by recent data and that the Fed will remain on the monetary tightening path.

In technical analysis, the NZD/USD pair holds below the 20-day Exponential Moving Average (EMA) at roughly 0.5854 and below the mid-Fibonacci retracement band around 0.5808. The Relative Strength Index (RSI) hovers near oversold territory, suggesting downside momentum persists but could be at risk of fatigue.