Ella 
During early Asian trading on Tuesday, NZD/USD was still limited below the 0.6100 mark. Financial markets will remain cautious this week, awaiting economic data and policy guidance. The U.S. ISM Services PMI for February will be released later in the day. The pair is currently trading around 0.6095, up 0.02% on the day.
Atlanta Fed President Raphael Bostic said there is no urgent pressure for the Federal Reserve (FED) to cut interest rates given the strong economy and job market. Bostic further said it might be appropriate for the Fed to approve two quarter-point interest rate cuts before the end of the year. San Francisco Fed President Mary Daly said central bankers are ready to cut interest rates if necessary, but stressed there was no urgent need to do so given the strength of the economy.
Investors will get more clues from Federal Reserve Chairman Jerome Powell’s testimony on Wednesday, which may provide some hints about the overall outline of the economy and monetary policy. Hawkish comments are likely to boost the U.S. dollar (USD) and be negative for NZD/USD.
China’s economy has been hit by a crisis in the real estate sector, raising concerns about the health of the world’s second-largest economy. Market participants will be closely watching what happens when the National People’s Congress opens on Tuesday. Progress surrounding the Chinese government’s stimulus package could boost the Chinese proxy New Zealand dollar and limit the downside for NZD/USD.
