Ella 
In the Asian market on Monday, the NZD/USD recovered its recent losses and was trading around 0.5820. After the United States released core personal consumption expenditures price index data last Friday, the performance of the US dollar was relatively sluggish, and NZD/USD benefited from this and rose.
However, NZD/USD is under pressure following the recent soft consumer price index (CPI) data, which may affect traders’ expectations that the Reserve Bank of New Zealand (RBNZ) will take a more accommodative stance on interest rate hikes, leading to The New Zealand dollar is weak. Investors are awaiting third-quarter payroll changes and the unemployment rate, due to be released later this week.
The situation in Israel could have an impact on the NZD/USD currency pair as Israel expands its ground operations in the Gaza Strip and conducts airstrikes against Hamas targets. Prime Minister Benjamin Netanyahu calls this the second phase of the war. Gaza recently suffered a power outage for more than a day, but phone and internet communications have been partially restored.
China and the United States have reportedly reached an agreement in principle for a meeting between President Joe Biden and Xi Jinping in November, a major diplomatic breakthrough that could improve market sentiment. After months of careful diplomatic efforts to repair relations between the two countries, the possible meeting between the two leaders has brought hope for a constructive dialogue between the two countries.
On the other hand, U.S. dollar investors appear to be taking profits following three consecutive days of gains for the greenback. The U.S. core personal consumption expenditures price index came in at an annual rate of 3.7% in September, down from the previous reading of 3.8%. However, the U.S. core personal consumption expenditures price index rose to 0.3% in September from the previous reading of 0.1%.
In addition, although the University of Michigan Consumer Index for October was 63.8, which was better than the expected value of 63.0, this positive result did not seem to significantly boost the dollar. This suggests that market sentiment is leaning towards expecting the Fed to remain on hold at its upcoming meeting on Wednesday.
