NZD Slumps Below 0.5950 as Strong US Data Boosts Dollar
The New Zealand dollar (NZD) against the US dollar (USD) has slipped below the psychological level of 0.5950 as the greenback strengthens.
This move comes on the back of solid US economic data and hawkish comments from Federal Reserve officials, which have reduced market bets on imminent rate cuts.
The US Dollar Index (DXY) rose to a two-week high, supported by robust retail sales and a resilient labor market. The CME FedWatch tool shows a 58% probability of a 25-basis-point rate cut in September, down from 68% a week earlier.
From a technical perspective, the NZD/USD pair is trading below its 20-day and 50-day moving averages, indicating a bearish short-term bias. Immediate support lies at the 0.5900 round figure, followed by the April low of 0.5850.