• NZD/USD steadied around 0.5970 on Tuesday as dollar weakness persisted in the run-up to the Fed’s policy decision.
• Market attention is firmly fixed on Wednesday’s FOMC outcome at 1800 GMT, where a 25 bps rate cut is widely expected, though the Fed’s guidance could inject volatility.. .
• A total of 67 basis points of reductions are seen over the rest of this year, rising to 81 basis points by end-January.
• A U.S. appeals court, meanwhile, blocked former President Trump’s attempt to dismiss Fed Governor Cook, adding a political layer to the backdrop.
• New Zealand's central bank is expected to cut rates by a quarter point to 2.75% in October, and reach 2.5% by early next year.
• Immediate resistance is located at 0.6005(50%fib), any close above will push the pair towards 0.6020(Higher BB).
• Support is seen at 0.5904(50%fib)and break below could take the pair towards 0.5898(SMA20).
Recommendation: Good to buy around 0.5970 with stop loss of 0.5850 and target price of 0.6060
