NZD/USD snaps the two days losing streak, holds above the 0.5900 mark, eyes on Chinese PMI, US NFP

NZD/USD attracts some buyers above 0.5900 on Monday.
Chinese finance ministry would reduce the 0.1% duty on stock trading to boost the capital market, strengthen investor confidence.
Fed is prepared to hike interest rates further if required but it would be determined by data.
Market players await the US Nonfarm Payrolls, Chinese Caixin Manufacturing PMI.

Lallalit Srijandorn FXStreet

The NZD/USD pair snaps the two-day losing streak during the early European session on Monday. The pair currently trades around 0.5916, gaining 0.23% on the day. The strength of the Kiwi is bolstered by the fresh measures from Chinese officials to recover confidence in the market.

On Sunday, the Chinese finance ministry said that the authorities would reduce the 0.1% duty on stock trading to stimulate the capital market and strengthen investor confidence. Alongside the action by the Ministry of Finance, the China Securities Regulatory Commission (CSRC) is implementing measures to bolster market confidence in listed companies after the Chinese equities index slumped to nine-month lows.

This development boosts the China-proxy Kiwi against the Greenback. However, investors will keep an eye on the Chinese Caixin Manufacturing PMI for August due on Friday. The concerns about China's deteriorating economic conditions should dampen market optimism, which might weigh on the NZD and act as a headwind for the NZD/USD pair.

Apart from this, the chief economist of the Reserve Bank of New Zealand (RBNZ) said last week that policymakers would lower the OCR sooner than they have signaled if China experienced a more significant deceleration than the RBNZ anticipates.

On the US Dollar front, Federal Reserve (Fed) Chairman Jerome Powell stated at the Jackson Hole Economic Symposium on Friday that the central bank is prepared to hike interest rates further if required. He added that the next rate hike decision would be determined by data. Meanwhile, Cleveland Fed President Loretta Mester said that GDP and labor market data show that the economy is gaining momentum. She emphasized that the current rates are not restrictive enough to reach the inflation target and a lower growth rate would be essential to moderate inflation. The US Nonfarm Payrolls data on this Friday could offer hints about the future path of monetary policy. The stronger than expected data might lift the US Dollar and limit the upside for the pair.

Moving on, traders will monitor on the US Nonfarm Payrolls and inflation data due later this week. The market anticipated that the US economy to create 170K jobs in August. Also, the Chinese Purchasing Managers' Indexes (PMI) will be in focus. The data will be critical for determining a clear movement for the NZD/USD pair.

NZD/USD

Overview
Today last price	0.5917
Today Daily Change	0.0014
Today Daily Change %	0.24
Today daily open	0.5903

Trends
Daily SMA20	0.6011
Daily SMA50	0.6125
Daily SMA100	0.6152
Daily SMA200	0.6227

Levels
Previous Daily High	0.5943
Previous Daily Low	0.5885
Previous Weekly High	0.5987
Previous Weekly Low	0.5885
Previous Monthly High	0.6413
Previous Monthly Low	0.612
Daily Fibonacci 38.2%	0.5907
Daily Fibonacci 61.8%	0.5921
Daily Pivot Point S1	0.5878
Daily Pivot Point S2	0.5852
Daily Pivot Point S3	0.582
Daily Pivot Point R1	0.5936
Daily Pivot Point R2	0.5968
Daily Pivot Point R3	0.5994

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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