Ella 
NZD/USD continues to decline after touching 0.5977 during the European morning session on Wednesday. As of press time, the currency pair was trading around 0.5947, an intraday drop of 0.41%.
Sentiment turned cautious ahead of key U.S. economic data releases, although the dollar snapped its rebound and fell below 103.60. Nonetheless, the Conference Board (CB) Consumer Confidence Index fell to 106.10 in August from 114.00 in July, below the market consensus of 116.0. At the same time, the U.S. Job Vacancies and Labor Turnover Survey (JOLTS) in July showed that the reading of the U.S. Job Vacancies and Labor Turnover Survey in July fell to 8.827 million, the lowest since March 2021. The previous value was 9.165 million, and it was expected to be 8.827 million. 9.465 million. The S&P/Case-Shiller Home Price Indices (S&P/Case-Shiller Home Price Indices) rose to -1.2% YoY, compared to -1.7% previously and -1.2% expected.
Fed Chairman Jerome Powell said last week that the central bank would leave the door open for possible additional rate hikes, depending on incoming data. The state of the labor market may affect the short-term direction of the dollar. Investors will take their cues from U.S. labor data due later in the week, which could trigger volatility in foreign exchange markets.
In the New Zealand dollar, a Reserve Bank of New Zealand (RBNZ) policymaker said that if China experiences a more significant economic contraction than the Reserve Bank of New Zealand expects, the Reserve Bank of New Zealand may cut interest rates early.
On the data front, Statistics New Zealand data showed that the total number of building permits fell 5.2% in July from a 3.4% increase in the previous month. The data was below market expectations for a 0.2% rise.
Additionally, headlines around US-China relations remain in focus. Rising tensions between the world’s two largest economies should dampen market optimism and limit upside in the New Zealand dollar, China’s proxy currency.
Later in the day, U.S. ADP private employment data and second-quarter gross domestic product (GDP) estimates were to be released. The closely watched event this week is Friday’s nonfarm payrolls (NFP) data. Traders will find trading opportunities.
