- NZD/USD snaps its winning streak due to a rebound in the US Dollar.
- The US Dollar struggled due to softer-than-expected US jobs data revived hopes for the Fed’s interest rate cuts later this year.
- RBNZ signaled to delay any shift toward monetary easing until 2025 due to higher inflation in Q1.
The NZD/USD pair experienced a slight decline after three consecutive days of gains, trading around 0.6000 during the Asian session on Monday. This decline in the pair could be attributed to the rebound in the US Dollar (USD).
The US Dollar Index (DXY), which gauges the performance of the US Dollar (USD) against six major currencies, hovers around 105.20, by the press time. The lower US Treasury yields could limit the advance of the Greenback.
However, the US Dollar struggled due to softer-than-expected US jobs data released on Friday. This development revived hopes for potential interest rate cuts by the US Federal Reserve (Fed) later this year. The prevalent risk appetite may continue this week following Fed Chair Jerome Powell's relatively dovish stance on the monetary policy outlook during Wednesday's session.
On the Kiwi’s side, China's Caixin Services Purchasing Managers' Index (PMI), slightly decreased to 52.5 in April, from 52.7 in March, aligning with expectations. However, it has marked the 16th consecutive month of growth in services activity. This has the potential to boost New Zealand's market, considering its status as one of the largest exporters to China.
Last week, the Reserve Bank of New Zealand (RBNZ) signaled its intention to delay any shift toward monetary easing until 2025, citing higher-than-expected inflation pressures in the first quarter. This stance may continue to provide support for the New Zealand Dollar (NZD), underpinning the NZD/USD pair
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