Ella 
On Monday, New Zealand’s NZX 50 index recovered from the day’s losses, causing the NZD/USD to recover some of the day’s losses. The pair was hovering around 0.6090 during the Asian session on Tuesday. The pair faces downward pressure from risk aversion ahead of this week’s key U.S. economic data, including ISM Services PMI data, ADP payroll changes and February non-farm payrolls.
Traders are also eagerly awaiting the Federal Reserve’s (Fed) stance and upcoming policy decisions. Federal Reserve Chairman Jerome Powell is scheduled to testify before the U.S. House of Representatives Financial Services Committee on Wednesday and Thursday on the Fed’s semiannual monetary policy report. According to the CME FedWatch tool, the probability of a quarter-point rate cut in March is 3.0%, and the probability of a rate cut in May and June is 21.8% and 50.9%, respectively.
Australian and New Zealand commodity prices reported by National Bank ANZ rose by 3.5% in February after rising by 2.1% in January. New Zealand’s fourth-quarter manufacturing sales are expected to be released on Thursday.
Reserve Bank of New Zealand Governor Adrian Orr reiterated that the central bank plans to begin normalizing policy in 2025, citing high inflation as a reason to maintain restrictive monetary policy for the foreseeable future.
