Ella 
The NZD/USD pair has climbed to approximately 0.6150, reaching a two-month high during the Asian session on Friday. This appreciation is linked to a weaker US Dollar (USD) amidst improved global risk sentiment. Traders are awaiting US Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium later in the day for further guidance.
The US Dollar has been pressured by declining US Treasury yields, with the US Dollar Index (DXY) trading around 101.30. As of the latest data, the 2-year and 10-year US Treasury yields are at 3.98% and 3.84%, respectively.
Support for the USD came from mixed S&P Global Purchasing Managers Index (PMI) data released on Thursday. The US Composite PMI slightly decreased to 54.1 in August from 54.3 in July, but remained above the expected 53.5, indicating ongoing business expansion for 19 consecutive months. The S&P Global US Services PMI edged up to 55.2 in August, surpassing the anticipated 54.0, while the Manufacturing PMI fell to 48.0, missing expectations and marking the second consecutive contraction in factory activity.
In New Zealand, Retail Sales fell by 1.2% quarter-on-quarter in Q2, following a revised growth of 0.4% in Q1 and exceeding expectations of a 1.0% decline. This decline reflects a continued downward trend in retail activity over the past eight quarters.
The Reserve Bank of New Zealand (RBNZ) has commenced an easing cycle, reducing its Official Cash Rate (OCR) to 5.25% in August, with markets anticipating further cuts of 25 basis points in October and November.
