{
  "id": 7732740,
  "title": "Australian, NZ dollars on edge as markets weigh Fed scenarios",
  "url": "https://urgent.news/2026/09/16/australian-nz-dollars-on-edge-as-markets-weigh-fed-scenarios",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-16T06:18:40.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40439747/australian-nz-dollars-on-edge-as-markets-weigh-fed-scenarios"
  },
  "original_language": "en",
  "account": "Australian and New Zealand currencies are experiencing volatility as markets grapple with potential Federal Reserve outcomes, according to a report. The U.S. central bank's upcoming meeting could see a range of results, which might lead to significant market fluctuations. Investors currently estimate a 92% probability of a quarter-point interest rate increase during the meeting, while analysts believe the Federal Reserve must maintain its anti-inflation stance. However, uncertainty remains regarding future hikes and guidance from Fed member Kevin Warsh. Chris Weston, head of research at Pepperstone, noted that Warsh's statements could cause a \"wild hour or two\" as traders react to the statement, dot plot, economic projections, and his press conference.\n\nThe Australian dollar is currently trading at $0.7125, having decreased 0.1% overnight. The support level is at the recent three-week low of $0.71085, while resistance is at $0.7149 and $0.7187. Meanwhile, the New Zealand dollar has reached a two-month low of $0.5740, after losing another 0.3% overnight. It has now fallen for seven consecutive sessions and may face further decline, potentially breaching support at $0.5762 and moving towards $0.5627. The Australian dollar has hit a 13-year peak against the kiwi at NZ$1.2392, rising by 3.3% over the past month. Markets suggest an 85% chance that the Reserve Bank of Australia will raise its cash rate by 25 basis points during its meeting on September 29, reaching 4.85% by early 2027. This hawkish outlook, combined with a decline in global debt markets, has led to a 15-year low for 3-year bond futures at 94.875. The 10-year yields have also surged to 5.381%. Investors anticipate the Reserve Bank of New Zealand to increase its cash rate to 3.0% by December and 3.75% by mid-2024. The central bank has forecasted a lower peak of 3.1%, but recent oil price increases have shifted risks toward higher levels. Assistant Governor Karen Silk's departure from the RBNZ in December is noted, with her hawkish stance potentially influencing future policy.",
  "summary": "SYDNEY: The Australian and New Zealand dollars eased against a broadly firmer greenback on Wednesday as investors struggled to price the risks from a looming Federal Reserve meeting, where a range of outcomes could cause considerable volatility. Markets imply a 92% chance of a quarter-point rate rise and analysts assume the Fed will have to deliver to safeguard its anti-inflation credibility.…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "Australian Dollar softens as risk-off mood meets FOMC countdown",
        "url": "https://urgent.news/2026/09/15/australian-dollar-softens-as-risk-off-mood-meets-fomc-countdown",
        "published": "2026-09-15T22:55:22.000Z"
      },
      {
        "outlet": "Winnipeg Free Press",
        "title": "Warsh likely to side with financial markets over Trump as Fed rate hike expected",
        "url": "https://urgent.news/2026/09/16/warsh-likely-to-side-with-financial-markets-over-trump-as-fed-rate",
        "published": "2026-09-16T04:02:27.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}