NZD/USD Dips Below 0.5950 as USD Firms Ahead of PCE Data

The NZD/USD pair dropped to a fresh weekly low of around 0.5945 during the early European session on Wednesday, weighed down by renewed selling pressure and a firming US dollar.

The US dollar regained positive traction ahead of the release of the US Personal Consumption Expenditures (PCE) Price Index later today, which is expected to provide insight into inflationary pressures in the US economy.

However, easing inflation fears amid falling oil prices and positive developments surrounding the Middle East crisis may cap the safe-haven huck of the US dollar. The Reserve Bank of New Zealand's (RBNZ) hawkish tilt should help limit losses for the NZD/USD pair.

From a technical perspective, spot prices hold above the 200-period Exponential Moving Average (EMA) on the 4-hour chart and an upward trendline, which act as underlying demand and keep the near-term bias mildly positive. However, repeated failures to conquer the 0.6000 psychological mark warrant some caution for bullish traders.