Kiwi Falls Below 0.5950 as US Dollar Rises on Inflationary Pressures

The New Zealand Dollar (NZD) has been under pressure against the US Dollar (USD), falling below 0.5950 on Monday as hot US inflationary pressures renewed pressure on the Federal Reserve to hike interest rates in the coming months.

According to Mitrade, the NZD/USD pair is currently trading at 0.5944, supported by an ascending trendline and the 200-day Simple Moving Average (SMA) at 0.5844.

Strategists at ING remain reasonably confident in their call for the Fed to hold off on a rate hike until September, but caution that incoming US releases and policy communication will be critical in shaping rate expectations and the Dollar's near-term trajectory.