Trump-Xi Meeting Looms Large Over NZD/USD

The New Zealand Dollar is struggling to find support against its US counterpart as market participants await the outcome of a meeting between US President Donald Trump and Chinese President Xi Jinping. The pair, NZD/USD, is currently trading around the 0.5675 area, hovering just above its lowest level since early July.

The US Dollar has been buoyed by expectations of another interest rate hike from the Federal Reserve, which now assign a roughly 70% probability that borrowing costs will rise again in October. This, combined with ongoing geopolitical tensions between the US and Iran, is providing support to the greenback and weighing on the Kiwi.

Despite some near-term relief for NZD/USD after its recent strong advance, the broader backdrop continues to favor the USD. The Reserve Bank of New Zealand's dovish policy outlook is also contributing to caution among traders, making it difficult for the pair to mount a convincing rebound from current levels.