The post NZD/USD steadies near October highs as Fed bets weigh on USD appeared on BitcoinEthereumNews.com.

The NZD/USD pair is seen consolidating its strong weekly gains registered over the past two days and holding steady near its highest level since early October, just below mid-0.5800s during the Asian session on Wednesday. Moreover, the fundamental backdrop favors bullish traders and suggests that the path of least resistance for spot prices is to the upside. The US Dollar (USD) struggles to attract any buyers and languishes near its lowest level since early October as dovish Federal Reserve (Fed) expectations overshadow Tuesday’s upbeat US growth figures. A delayed report published by the US Commerce Department showed that the world’s largest economy expanded by 4.3% annualized pace during the July–September period. The reading was stronger than consensus estimates and exceeded the 3.8% rise recorded in the previous quarter. The surprise GDP beat, however, did little to influence market expectations for further policy easing by the Fed. In fact, traders are still pricing in two more rate cuts in 2026 amid softer consumer inflation and signs of a cooling US labor market. Moreover, US President Donald Trump declared that any candidate for the role of the Fed Chair must commit to lowering interest rates even when the economy is performing well. This keeps the USD depressed and lends support to the NZD/USD pair. Apart from this, a generally positive risk tone is seen as another factor undermining the Greenback’s relative safe-haven status and acting as a tailwind for the perceived riskier Kiwi. The New Zealand Dollar (NZD) further draws support from the Reserve Bank of New Zealand’s (RBNZ) hawkish outlook on the future policy path. In fact, RBNZ Governor Ann Breman had said that the policy rate is likely to remain at its current level for an extended period if economic conditions unfold as expected. The aforementioned fundamental backdrop validates the…

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Filed under: News - @ December 24, 2025 1:25 am