NZD/USD inches lower after reaching six-month high of 0.6000

💡 DMK Insight

NZD/USD just broke its seven-day winning streak, and here’s why that matters: The halt at 0.5970 comes as traders brace for the Fed’s policy announcement, which could shift market sentiment significantly. With the USD gaining stability, the NZD faces pressure, especially if the Fed hints at a more hawkish stance. Keep an eye on the 0.5950 support level; a break below could trigger further selling. Conversely, if the Fed surprises with a dovish tone, we might see a quick rebound in NZD/USD. It’s also worth noting that this pause in NZD’s rally could affect correlated pairs like AUD/USD. If the Fed’s decision leads to a stronger USD, expect the AUD to follow suit, impacting commodity prices as well. Traders should monitor the Fed’s language closely, as any signals about future rate hikes could lead to volatility across the board.