Ella 
NZD/USD is currently trading around 0.6210 after retreating from Friday’s seven-month high of 0.6236. However, as the Federal Reserve maintains a dovish bias in terms of policy outlook, the downside for NZD/USD may be limited.
“Now is the time to adjust policy,” Federal Reserve Chairman Powell said at a Jackson Hole symposium on Friday. Although Powell did not specify when he would start cutting interest rates or the possible extent of the rate cuts, the market expected the Fed to adjust policy. The Fed will announce a 25 basis point interest rate cut at its September meeting.
In addition, according to Bloomberg, Philadelphia Fed President Patrick Harker said on Friday that the Fed’s approach to adjusting interest rates needs to be “methodical,” indicating that policymakers are planning a series of interest rate cuts for the remainder of 2024 because The Fed is preparing to turn dovish.
However, NZD/USD may face downward pressure as the market has fully priced in a further 25 basis points rate cut by the Reserve Bank of New Zealand in October and November. The Reserve Bank of New Zealand has started an easing cycle, lowering the official cash rate (OCR) to 5.25% in August.
Later in the week, traders are likely to focus on ANZ-Roy Morgan consumer sentiment for August and seasonally adjusted building consent (monthly) data for July as these data could It will provide new signals for New Zealand’s economic activities.
