NZD Tumbles Below 0.5950 as US Dollar Rises on Strong Economic Data

The New Zealand dollar (NZD) fell below 0.5950 against the US dollar (USD) on Tuesday, as the greenback strengthened due to solid US economic data and hawkish comments from Federal Reserve officials.

The NZD/USD pair dropped to a session low of 0.5935, extending its recent pullback from the 0.6000 psychological level.

The US Dollar Index (DXY) rose to a two-week high, supported by robust retail sales and a resilient labor market. The strong economic indicators reduced market bets on imminent rate cuts, pushing Treasury yields higher and underpinning the greenback.

According to the CME FedWatch tool, there is now a 58% probability of a 25-basis-point rate cut in September, down from 68% a week earlier.