The New Zealand Dollar continued to show strength against the US Dollar, trading with a positive bias for the second consecutive day on Wednesday. Despite this momentum, the NZD/USD pair remained below the mid-0.5800s throughout the Asian session, according to FX Street.
Meanwhile, the USD/JPY pair edged slightly lower during the same session but stayed close to levels last seen in late April, maintaining proximity to the recent highs touched last week. FX Street noted that the pair remains within striking distance of the intervention zone around 160.50 yen, a level closely watched by the Bank of Japan.
Market participants are positioning cautiously ahead of the upcoming Federal Open Market Committee (FOMC) meeting, which is expected to influence USD dynamics. For Japanese investors, the USD/JPY movement near key intervention thresholds remains a critical factor amid ongoing BOJ policy considerations.