Ella 
NZD/USD once again faced selling pressure during the Asian session on Tuesday and briefly fell below 0.6050 for the first time since mid-May. Spot prices now appear to have confirmed a breakout above the 50-day simple moving average (SMA), and the pair looks vulnerable to extending its three-week losing streak amid some follow-through buying in the US dollar.
Concerns that inflation will be higher under President Trump than under the Biden administration pushed the benchmark 10-year Treasury yield to its highest level in a month on Monday. This, in turn, helped the dollar build on its solid rebound from multi-day lows overnight. On the other hand, expectations that the Reserve Bank of New Zealand (RBNZ) will cut interest rates earlier than expected weighed on the New Zealand dollar.
Apart from this, China’s economic woes have also further led to outflows from commodity currencies, including the New Zealand dollar. Meanwhile, US dollar bulls may hold off on aggressive bets and instead await more clues about further policy decisions from the Federal Reserve (Fed), as bets grow that the Fed will soon start a rate cut cycle in September. Therefore, the market will continue to focus on the speech of Federal Reserve Chairman Jerome Powell later today.
Besides this, US economic data on Tuesday, including the JOLTS job openings data, could influence the US dollar price dynamics and provide some impetus to NZD/USD. Subsequently, the focus will shift to the FOMC minutes on Wednesday and the closely watched US non-farm payrolls report on Friday. This, in turn, will determine the near-term trend of the US dollar and the currency pair.
