NZD/USD consolidates in a narrow range around 0.6160 ahead of ANZ Business Confidence

The NZD/USD pair oscillates in a narrow range in the early Asian session. The downtick in the Kiwi is supported by the strengthening of the US Dollar across the board following the strong US Q2 Gross Domestic Product (GDP) and the robust June Durable Goods Orders data. NZD/USD currently trades around 0.6155, gaining 0.11% for the day. 

On Friday, the US Bureau of Economic Analysis reported that June's Personal Consumption Expenditures (PCE) Price Index decreased to 3% from 3.8% in May. This report fell short of the market's expectation of 3.1%. Meanwhile, the Federal Reserve's preferred measure of inflation, the Core PCE Price Index, came in at 4.1% annually, down from 4.6% in May and below market expectations of 4.2%. While, Personal Income and Personal Spending MoM increased 0.3% and 0.5%, respectively.

That said, the Reserve Bank of New Zealand (RBNZ) maintained the official cash rate (OCR) unchanged at 5.50% in the July meeting on July 12, which triggered further downside on the Kiwi. Market participants will focus on the Q2 Employment data on Wednesday. New Zealand's unemployment rate has remained at record lows. If labor market conditions worsen, the RBNZ will likely maintain interest rates at 5.5% at its next monetary policy meeting in August.

Looking ahead, July's New Zealand ANZ Activity Outlook and ANZ Business Confidence will be due later in the day. Also, New Zealand will release job market data on Wednesday. Market participants will focus on the US employment data. The JOLTS Job Openings report, ADP Private Employment, Weekly Jobless Claims, and Unit Labour Cost will be released later this week. The week's key event is the Nonfarm Payrolls report, due on Friday. The economy is expected to have created 180,000 jobs, with the unemployment rate remaining 3.6%. This data could give the NZD/USD pair a clear direction.