Ella 
The NZD/USD pair remained on the defensive around 0.6000 during early Asian trading on Tuesday. Strong U.S. economic data and hawkish comments from Federal Reserve officials boosted the greenback and weighed on NZD/USD. As of press time, NZD/USD was trading at 0.6052, down 0.02% on the day.
On Monday, the U.S. ISM services purchasing managers’ index rose to 53.4 in January from 50.5 in December, better than expectations for 52.0. The ISM non-manufacturing new orders index in the United States rose to a three-month high of 55.0 in January. The employment index rebounded into expansionary territory, rising to 50.5. Finally, the price index jumped to 64.0.
Minneapolis Fed President Neel Kashkari said on Monday that strong economic growth and a possible rise in the neutral interest rate mean the Fed will take some time before deciding to cut interest rates. On Sunday, Fed Chairman Jerome Powell said the central bank’s probability was less than 20%. The Fed’s hawkish tone supported the dollar to some extent.
Data released by Caixin on Monday showed that China’s services purchasing managers index (PMI) has remained in the expansion range for 13 consecutive months. China’s Caixin Services Purchasing Managers’ Index (PMI) recorded 52.7 in January, compared with the previous value of 52.9.
New Zealand markets will be closed on Waitangi Day. Traders will get more clues from Fed Mester’s speech on Tuesday. Later this week, China’s consumer price index (CPI) and producer price index (PPI) for January will be released.
