Ella 
In the Asian market on Monday, the New Zealand dollar/US dollar fell slightly after three consecutive days of gains, trading around 0.6000. The decline in NZD/USD may be due to a rebound in the US dollar.
As of press time, the U.S. dollar index (DXY), which measures the performance of the U.S. dollar against six major currencies, was hovering around 105.20. U.S. Treasury yields may limit the dollar’s gains.
However, the dollar was in trouble after U.S. employment data released last Friday fell short of expectations. The development revived hopes that the Federal Reserve could cut interest rates later this year. Federal Reserve Chairman Powell took a relatively dovish stance on the outlook for monetary policy at Wednesday’s meeting, and market risk appetite may continue to strengthen this week.
In NZD/USD, China’s Caixin Services Purchasing Managers’ Index (PMI) edged down to 52.5 in April from 52.7 in March, in line with expectations. However, this marked the 16th consecutive month of growth in the services PMI. Considering New Zealand is one of China’s largest exporters, this has the potential to boost the New Zealand market.
Last week, the Reserve Bank of New Zealand expressed its intention to postpone the adjustment of monetary easing policy until 2025, citing higher-than-expected inflationary pressures in the first quarter. This stance is likely to continue to provide support for NZD/USD, boosting NZD/USD.
