NZD/USD stalls in quiet trade ahead of the Fed

• NZD/USD is oscillating in a tight range ahead of the Federal Reserve meeting later today. 
• NZD/USD is trading at 0.7228, between the range of 0.7227/45.

It was a mixed risk sentiment environment overnight which has turned into a quiet Asian session, consolidating the mood ahead of the Fed later today. 

''Given the current loss of momentum in jobs growth and consumption, it is very difficult to see anything other than a dovish statement and press conference,'' analysts at ANZ Bank explained.

''That may well perpetuate extended market consolidation in an environment where Biden’s reflationary ambitions are being delayed by Trump’s impeachment trial.''  

Meanwhile, positioning data is compelling and the imbalances in the commodity complex forex should be noted. 

While the analysts at ANZ bank noted, the Reserve Bank of New Zealand is at, or close to, the trough in the monetary policy cycle, the positioning is overstretched and out of whack.

The analysts argue, none the less, the dips are a buying opportunity against the US dollar. 

However, against, say the CAD, there could be a more medium-term downside trajectory:

• NZD/CAD Price Analysis: One for the bear's watchlist

''A dovish FOMC meeting tomorrow will play into that theme although further gains might be limited in the near term by congestion in the 0.7250/0.7300 area,'' the analysts at ANZ bank argue.