NZD/USD remains under pressure above 0.5800, US data eyed

The NZD/USD pair trades in negative territory for the fifth consecutive day during the Asian trading hours on Monday. The escalating geopolitical tensions in the Middle East exert some selling pressure on riskier assets like the New Zealand Dollar (NZD). The pair currently trades around 0.5821, losing 0.15% on the day.

As the FOMC enters its blackout period, Atlanta Federal Reserve (Fed) President Raphael Bostic said on Friday that he doesn't think that the US central bank will cut the rate before the middle of next year. Fed Philadelphia President Patrick Harker reiterated his preference to keep interest rates unchanged. While Fed Cleveland President Loretta Mester said the US central bank is "at or near the peak of the rate hike cycle. The expectation that the Fed will hold rates high for longer might lift the USD against the Kiwi and act as a headwind for the pair.

On the Kiwi front, the New Zealand markets closed for Labor Day. On Friday, the nation’s Trade Balance (NZD) came in at $-15.33B YoY in September versus $-15.52B prior. Exports eased to $4.87B during the said month versus $4.97B prior whereas Imports dropped to $7.20B compared to $7.24B in previous readings, Statistics New Zealand reported.

In the absence of economic data released from New Zealand’s docket this week, the NZD/USD pair remains at the mercy of USD price dynamics. Traders will focus on the US S&P Global PMI on Tuesday, the first reading of Q3 Gross Domestic Product (GDP) growth on Thursday, and the Core Personal Consumption Expenditures (PCE) on Friday. These figures could give a clear direction to the NZD/USD pair.