NZDUSD fights to hold support or risks further drop

NZDUSD has fallen to the support level of 0.5873 due to the market's attention towards the hawkish remarks made by the Fed last week. The Kiwi market is expected to remain calm today, but may be impacted by the release of the US inflation report and Chinese data. The Kiwi has been weakened by the slow economic recovery in China and the Fed's indication of further rate hikes in case inflation persists. Investors are eagerly waiting for the US CPI report which is due on Tuesday. If the report shows an overshoot, it would support the Fed's argument and boost the US dollar, while the New Zealand dollar's performance will be influenced by the data reports from China.
At the moment, a breakout is imminent on NZDUSD as it respects the 0.5873 support with the move now limited within a range.