NZD/USD pair remains range-bound, awaiting Fed decision

The market widely expects the Federal Reserve to cut interest rates by 25 basis points to 3.50-3.75% on Wednesday, as weak labor data outweighs concerns about inflation. According to the CME FedWatch tool, the market has priced in a near 90% probability of a rate cut. The FOMC statement and Chairman Powell's press conference will be key to influencing the policy outlook and market sentiment in 2026.

New Zealand's new Governor, Anna Breman, will meet with reporters on Wednesday.

The NZD/USD pair is expected to continue its consolidation, with the RSI and Stochastic indicators continuing to rise. Having broken through the November 14 high of 0.5691, the NZD is likely to remain stable. Short-term targets are initially seen at 0.58 and the 200-day moving average at 0.5855, followed by key levels at 0.59 and 0.60. The supporting levels are estimated at 0.57 and 0.5610, with the next key levels pointing to 0.55 and 0.5460.

Forecast range:
Resistance: 0.5800 * - 0.5855 - 0.5900 - 0.6000*
Support: 0.5700 - 0.5610 - 0.5500* - 0.5460
 

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