The New Zealand Dollar (NZD) is making significant headway against the US Dollar (USD) on Wednesday, having recently breached important resistance at 0.5970. The pair is now advancing towards the critical psychological barrier of 0.6000.

This movement is bolstered by a growing risk appetite among investors and the ongoing weakness of the US Dollar. Enthusiasm surrounding the moderate inflation data released on Tuesday has reinforced beliefs that the Federal Reserve may consider a September rate cut to support a softening labor market.