Ella 
The NZD/USD saw some buying around the 0.5850 level as the market’s risk appetite stabilized ahead of a busy week of US data releases.
On the economic calendar, New Zealand data is light, leaving NZD/USD volatility to be driven by US growth and inflation data.
The U.S. PMI for October will be released on Tuesday, and both components of the PMI are expected to decline, albeit modestly: the manufacturing PMI is expected to fall from 49.8 to 49.5, while the services PMI is expected to fall from 49.8 to 49.5. The industrial PMI is expected to fall to 49.9 from 50.1, entering the expected contraction range.
Federal Reserve (FED) Chairman Powell will give a speech on Wednesday, and U.S. gross domestic product (GDP) data will be released on Thursday; U.S. GDP is expected to have accelerated in the third quarter, with the annualized growth rate rising to 4.2% from 2.1%. .
On Friday, U.S. inflation data will be released to close out the week, with the Personal Consumption Expenditures (PCE) index expected to rise to 0.3% from 0.1% in September.
The acceleration in U.S. headline inflation data is a bad sign for overall market sentiment as investors are betting on the Fed exiting its rate-hiking path, but persistently higher inflation will prove to be an insurmountable obstacle for the Fed to overcome before friction begins to cause rates to fall. According to the Fed’s current dot plot, the Fed won’t cut rates until the second half of 2024.
