NZD/USD Price Forecast: Kiwi dips below 0.5950 as US Dollar strengthens

The New Zealand Dollar (NZD) has fallen below 0.5950, trading at 0.5944, as the US Dollar (USD) strengthens, following the release of hot US inflation data on Wednesday. This data has pressured the Federal Reserve (Fed) to raise interest rates in the coming months. Traders are watching the bottom of the weekly range, around 0.5930, after a rejection earlier this week at the 0.6000 level.

The US Personal Consumption Expenditures (PCE) Price Index showed that inflationary pressures are still growing above the Fed's target, but the market's expectation for a September rate hike remains unchanged. ING strategists remain confident the Fed will hold on September 16, indicating a weak Dollar, but caution that data and Fed communications in the next three weeks will be crucial in determining the Dollar's near-term path.