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The NZD/USD pair remains in a narrow trading range near 0.5830 as the New Zealand Dollar gains modest support from a weaker US Dollar. Traders are adopting a cautious stance ahead of the Federal Reserve’s upcoming policy decision, which could influence the USD’s direction and, consequently, the NZD/USD cross. The Fed’s decision on interest rates and forward guidance will likely drive market sentiment, with potential impacts on global currency movements. For forex traders, the key focus will be on the Fed’s assessment of inflation and employment data, which could trigger volatility in the pair. The absence of significant economic data from New Zealand adds to the sideways consolidation. Market participants are closely monitoring the Fed’s meeting for clues about the future trajectory of monetary policy, which remains a critical factor for the USD and its crosses.
