Ella 
NZD/USD rebounded from near one-month highs on Monday. Weak U.S. housing data on Friday added to concerns about the strength of the U.S. economy, especially after recent weak inflation and jobs reports. Traders are also betting on a rate cut by the Federal Reserve in September, which would weaken the dollar and create favorable conditions for NZD/USD.
However, the Reserve Bank of New Zealand’s (RBNZ) dovish stance following last week’s surprise rate cut could weigh on the New Zealand dollar as the easing cycle begins much earlier than expected. Additionally, since China is New Zealand’s largest trading partner, any signs of a weakening Chinese economy could limit the New Zealand dollar’s upside.
Traders will be closely watching New Zealand trade balance data and the People’s Bank of China’s interest rate decision on Tuesday. The highlight of the week will be Fed Chairman Jerome Powell’s speech at a Jackson Hole symposium on Friday. This incident may provide some guidance for the Fed’s easing pace.
