Ahead of RBNZ, NZD/USD struggles to find direction

The NZD/USD pair is fluctuating in a relatively tight range on Tuesday. The Reserve Bank of New Zealand is expected to hike its fiscal policy rate by 25 basis points on Wednesday.

Meanwhile, the U. S. Dollar Index has clinged to modest daily gains, and stayed below 94.00. The NZD/USD pair is having a hard time making a decisive move in either direction on Tuesday as investors are still on the sidelines while waiting for the Reserve Bank of New Zealand to announce its policy decisions.

Although the positive shift witnessed in risk sentiment is helping the NZD/USD pair stay afloat in the positive territory, the modest USD strength is limiting its uptrend.

The U. S. data has showed that the economic activity in the service sector continued to expand at a relatively strong pace in September with the ISM Services PMI edging higher to 61.9 from 61.7 in August.

On the other hand, the GDT Price Index remained unchanged following the bi-weekly auction in New Zealand.