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The NZD/USD pair posts modest gains near 0.5805 during the early Asian trading hours on Tuesday. Expectations for the US Federal Reserve (Fed) interest rate cuts in 2026 weigh on the US dollar (USD) against the New Zealand Dollar (NZD). The release of the Federal Open Market Committee (FOMC) Minutes will take center stage later on Tuesday. Financial markets are expected to trade on thin volumes as traders prepare for the New Year holiday. The US central bank delivered the third and final rate cut this year at its December policy meeting, bringing the federal funds rate to a target range of 3.50% to 3.75%. Fed Chair Jerome Powell said during the press conference that future policy decisions will be dependent on incoming economic data, particularly regarding inflation and the labor market.  According to the CME FedWatch tool, traders have priced in nearly a 16.1% chance that the Fed will reduce interest rates at its next policy meeting in January. The US Pending Home Sales rose 3.3% MoM in November after an upwardly revised 2.4% gain in October, the National Association of Realtors revealed on Monday. This figure came in above the market consensus of 1.0% and registered its highest level since February 2023.  Analysts believe the rate-cutting cycle of the Reserve Bank of New Zealand (RBNZ) is likely finished for now, which could provide some support to the Kiwi against the Greenback. The New Zealand central bank cut the Official Cash Rate (OCR) by 25 basis points (bps) to 2.25% at its November meeting. The RBNZ signaled that future rate changes will depend on the economic and inflation outlook.  New Zealand Dollar FAQs The New Zealand Dollar (NZD), also known as the Kiwi, is a well-known traded currency among investors. Its value is broadly determined by the health of the New Zealand economy and the country’s…

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Filed under: News - @ December 30, 2025 2:12 am