The post NZD/USD steady near 0.5800 amid Taiwan tensions, Fed rate path doubts appeared on BitcoinEthereumNews.com.

NZD/USD trades virtually unchanged on Tuesday around 0.5800 at the time of writing, after trimming part of its recent losses. However, recovery attempts remain fragile, as markets are dominated by a combination of monetary caution and renewed geopolitical risks in Asia, a backdrop that is not particularly supportive for cyclical currencies such as the New Zealand Dollar (NZD). Investors remain focused on rising tensions between China and Taiwan. Beijing has launched large-scale military drills around the island, including live missile-firing exercises, in retaliation for an agreement with the United States (US) involving an $11 billion military aid package to Taipei. Taiwanese authorities confirmed the deployment of their missile systems, reviving fears of a regional escalation. This environment weighs on overall risk sentiment and curbs demand for growth- and trade-sensitive currencies like the New Zealand Dollar. On the monetary front, market participants are awaiting the release of the Federal Open Market Committee (FOMC) Minutes from the Federal Reserve (Fed) later in the day, looking for clearer insight into internal discussions on the future policy outlook. At its latest meeting, the Federal Reserve delivered its third rate cut of the year, bringing the federal funds target range to 3.50%-3.75%, while emphasizing a data-dependent approach, particularly regarding inflation and labor market conditions. Updated projections from the US central bank point to a policy rate near 3.4% by 2026, implying a more cautious easing path than what markets are currently pricing in. According to the CME FedWatch tool, investors continue to expect at least two additional rate cuts by the end of 2026. This gap between market expectations and official guidance continues to generate persistent uncertainty around the US Dollar (USD), limiting directional momentum in NZD/USD. On the New Zealand side, analysts believe the rate-cutting cycle of the Reserve Bank of New Zealand (RBNZ)…

---

Filed under: News - @ December 30, 2025 5:29 pm