NZD/USD Extends Losses to Six Days, Near 0.5655 on Hawkish Fed

The NZD/USD pair continued its downward trend, trading around 0.5655 during early European hours on Tuesday. This marks the sixth consecutive day of losses for the Kiwi, as the US Dollar gains strength.

The move is attributed to a hawkish tone from the Federal Reserve, which has reinforced expectations of higher-for-longer interest rates in the United States. The Fed's stance contrasts with a more dovish outlook from the Reserve Bank of New Zealand, weighing on the New Zealand Dollar.

Technical levels suggest further downside risk for the pair, with support seen near the 0.5600 handle. Traders will monitor upcoming US economic data for additional direction.