The NZD/USD pair trades sideways near the 0.5830 region on Wednesday, as the New Zealand Dollar (NZD) finds mild support from a softer US Dollar, while traders remain cautious ahead of the Federal Reserve’s (Fed) policy decision.

The USD/JPY advances steadily on Tuesday as market participants brace for the Federal Reserve’s monetary policy decision, as the meeting kicked off during the day. At the time of writing, the pair trades at 160.47, within the intervention zone.

The USD/CHF retreats for the second straight day but remains above its current weekly low of 0.7921, due to overall US Dollar weakness, triggered by the Greenback's strong correlation with falling Oil prices and traders' lack of expectation of Fed rate hikes.

The AUD/USD pair trades slightly lower near 0.7070 on Tuesday, as the Australian Dollar (AUD) struggles to extend gains despite the Reserve Bank of Australia (RBA) maintaining a cautiously hawkish tone.

Silver (XAG/USD) trades virtually unchanged on Tuesday around $70.00 after reclaiming its 200-day Simple Moving Average (SMA), as traders await the Federal Reserve's (Fed) monetary policy announcement before placing large directional bets.

USD/CHF extends losses for a second consecutive day on Tuesday as easing tensions between the United States (US) and Iran weigh on demand for the safe-haven US Dollar (USD). At the time of writing, the pair trades around 0.7921, down 0.30% on the day.

USD/CAD trades around 1.3990 on Tuesday at the time of writing, little changed on the day as markets adopt a cautious stance ahead of the Federal Reserve’s (Fed) monetary policy decision.

EUR/USD has gone almost nowhere since the weekend's deal headlines, and Tuesday was more of the same: a dip that held above 1.1550, a grind back to the 1.1600 handle, and a hard stall at the 200-day Exponential Moving Average (EMA) sitting just overhead.

The USD/JPY pair rose slightly around the intervention zone of 160.40 on Tuesday, as the Japanese Yen (JPY) struggles to gain strong traction even after the Bank of Japan (BoJ) raised interest rates to their highest level in more than three decades.

The Pound Sterling holds firm above the 1.3400 level on Tuesday as the US Dollar recovers some ground, even as geopolitical tensions ease following the US-Iran peace agreement. At the time of writing, the GBP/USD trades with minimal losses of 0.03%

The Australian Dollar (AUD) strengthens against the US Dollar (USD) on Tuesday after the Reserve Bank of Australia (RBA) delivered a hawkish hold at its June policy meeting. At the time of writing, AUD/USD trades around 0.7070 after bouncing from an intraday low of 0.7042.

National Bank of Canada (NBC) argues that Euro upside against the Dollar is likely to be limited, as relative growth and interest rate differentials still favor the United States.

GBP/JPY rebounds after a short-lived pullback on Wednesday as traders digest the Bank of Japan's decision to raise interest rates. At the time of writing, the cross is trading around 215.10, recovering from an intraday low of 214.53.

Rabobank’s FX Strategy team notes that USD/JPY is little changed after the latest BoJ meeting, with markets more focused on the upcoming Fed decision and new Fed President Warsh.

National Bank of Canada (NBC) expects USD/CAD to remain broadly range-bound, with recent moves reflecting shifting expectations for Federal Reserve and Bank of Canada policy.

The Japanese Yen (JPY) remains anchored around the critical 160.00 threshold against the US Dollar despite the Bank of Japan's (BoJ) historic decision to raise its benchmark interest rate to 1.00%. 

Brazil Retail Sales (MoM) came in at -1.5% below forecasts (-0.6%) in April

Societe Generale analysts, including Kenneth Broux, note AUD/USD is under pressure after failing to hold its 50‑day moving average and forming a pattern of lower highs and lows.

The US Dollar (USD) posts marginal losses against the Swiss Franc (CHF) on Tuesday, with bears aiming for a key support area between 0.7900 and 0.7930.

UOB’s Quek Ser Leang reports that USD/JPY was little changed around 160.30, with recent price action offering no fresh directional clues.

Societe Generale strategists argue that South African Rand dynamics hinge on upcoming CPI, retail sales and the Federal Reserve meeting.

Brown Brothers Harriman’s Elias Haddad highlights a muted reaction in USD/JPY to the Bank of Japan’s 25 bps hike to 1.00%, even as JGB yields underperform and the BOJ maintains its tightening bias and JGB tapering roadmap.

Brown Brothers Harriman’s Elias Haddad reports that AUD/USD has retraced part of its US-Iran peace agreement rally after the Reserve Bank of Australia left rates unchanged at 4.35%.

MUFG’s Lee Hardman reports the Australian Dollar has weakened modestly after failing to reclaim the 0.7100 level and as the RBA unanimously left rates on hold at 4.35% following three hikes this year.

The Euro (EUR) holds a moderately positive tone against the US Dollar (USD) on Tuesday, with the EUR/USD pair returning to levels above 1.1600, following upbeat economic sentiment data in Germany and the Eurozone.

MUFG’s Lee Hardman notes the Japanese Yen is little changed after the BoJ’s widely anticipated 0.25% rate hike to 1.00%, with USD/JPY still trading just above 160.00. The BoJ also decided to pause its QE taper from FY2027, while continuing gradual JGB purchase reductions until then.

Eurozone ZEW Survey – Economic Sentiment came in at 9.5, above expectations (-7.2) in June

Eurozone Labor Cost Index below expectations (3.3%) in 1Q: Actual (3.2%)

Germany ZEW Survey – Current Situation registered at -81, below expectations (-77.5) in June

Germany ZEW Survey – Economic Sentiment registered at 10.5 above expectations (-6) in June