Foreign exchange - NZD/USD slips decrease, all eyes on Fed determination

Kiwi edges lower vs. greenback before conclusion of Fed meeting

Investing.com – The New Zealand dollar slipped lower against its U.S. counterpart on Wednesday, as investors remained cautious ahead of the Federal Reserve’s monetary policy decision due later in the day.

hit 0.6740 during late Asian trade, the session low; the pair subsequently consolidated at 0.6754, edging down 0.13%.

The pair was likely to find support at 0.6690, the low of December 14 and resistance at 0.6830, Tuesday’s high and a one-and-a-half month peak.

Most investors expect the U.S. central bank to raise interest rates for the first time since June 2006 at the conclusion of its meeting on Wednesday.

Higher interest rates would make the U.S. dollar more attractive to yield-seeking investors in the long run, but a rate hike could also trigger dollar selling in the immediate aftermath.

With a rate hike priced in investors are now focusing on how quickly the Fed will tighten monetary policy in 2016. The Fed has indicated that the pace of rate hikes will be gradual.

The kiwi was lower against the Australian dollar, with rising 0.24% to 1.0655.

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Foreign exchange - NZD/USD slips decrease, all eyes on Fed determination