NZD Rises to Near 0.5860 as US Dollar Remains Under Pressure
The New Zealand Dollar (NZD) has risen to near 0.5860 against the US Dollar (USD), as the US Dollar remains under pressure. The US Dollar's decline comes despite Federal Reserve interest rate hike prospects remaining firm, with a 60% chance of a rate hike at the upcoming policy meeting, according to the CME FedWatch tool.
Investors are closely watching the release of the US Consumer Price Index (CPI) data for August, which is expected on Friday. Economists at TD Securities predict that underlying inflation will remain under control in August, with core CPI rising 0.19% month-over-month and 2.3% year-over-year.
The NZD/USD pair has slipped back below its 20-day exponential moving average (EMA) at 0.5889, indicating fading bullish momentum without yet entering oversold territory. Initial resistance is located at the 20-day EMA near 0.5890, and a daily close above this level would be needed to ease immediate downside pressure.