NZD Surges Amid US Dollar Weakness Ahead of US CPI Release
The New Zealand Dollar (NZD) has risen by 0.13% against the US Dollar (USD), trading at around 0.5860 during the European session on Wednesday.
This gain comes as the US Dollar underperforms despite expectations of a Federal Reserve interest rate hike next week, with the odds standing at 60% according to the CME FedWatch tool.
Investors are also awaiting the US Consumer Price Index (CPI) data for August, which is due on Friday. Economists at TD Securities expect core inflation to stay under control, rising by 0.19% month-over-month and 2.3% year-over-year.
The NZD/USD pair has a mildly bearish near-term bias, sitting below the 20-day exponential moving average (EMA) at 0.5889. Initial resistance is located at this level, with a daily close above it needed to ease immediate downside pressure and reopen the path toward recent highs.