NZD Falls as US Inflation Data Slightly Surprises Markets

The New Zealand Dollar (NZD) has dipped against the US Dollar (USD), falling 0.60% on Wednesday to around 0.5940, following the release of US inflation data.

The Personal Consumption Expenditures (PCE) Price Index rose 3.7% year-over-year in July, slightly above the 3.6% expected by markets.

This slight upside surprise provided some support to the Greenback, but the reaction was limited as the core measure delivered no surprise and the report did not significantly alter expectations for the September meeting.

Markets are now looking ahead to Fed Chair Kevin Warsh's speech at the Jackson Hole Economic Policy Symposium on Friday, which could provide fresh clues about how the US central bank assesses persistent inflation and its policy intentions.