NZD Crumbles Below 0.5950 as US Inflation Data Fuels Rate Hike Bets

The New Zealand Dollar (NZD) has continued its downward trend against the US Dollar (USD), dropping below 0.5950 for the second consecutive day.

This decline is attributed to hot US inflation data released on Wednesday, which put pressure on the Federal Reserve (Fed) to hike interest rates in the coming months.

Strategists at ING remain 'reasonably confident' that the Fed will hold off on a September rate hike and maintain a weaker Dollar.

However, they caution that upcoming US releases and policy communication will be crucial in shaping rate expectations and the Dollar's near-term trajectory.