The NZD/USD pair snaps the two-day losing streak during the early European session on Monday. The pair currently trades around 0.5916, gaining 0.23% o
n the day. The strength of the Kiwi is bolstered by the fresh measures from Chinese officials to recover confidence in the market.
On Sunday, the Chinese finance ministry said that the authorities would reduce the 0.1% duty on stock trading to stimulate the capital market and strengthen investor confidence. Alongside the action by the Ministry of Finance, the China Securities Regulatory Commission is implementing measures to bolster market confidence in listed companies after the Chinese equities index slumped to nine-month lows.
This development boosts the China-proxy Kiwi against the Greenback. However, investors will keep an eye on the Chinese Caixinfor August due on Friday. The concerns about China's deteriorating economic conditions should dampen market optimism, which might weigh on the NZD and act as a headwind for the NZD/USD pair.
Apart from this, the chief economist of the Reserve Bank of New Zealand said last week that policymakers would lower the OCR sooner than they have signaled if China experienced a more significant deceleration than the RBNZ anticipates.stated at the Jackson Hole Economic Symposium on Friday that the central bank is prepared to hike interest rates further if required. He added that the next rate hike decision would be determined by data.
Moving on, traders will monitor on the US Nonfarm Payrolls and inflation data due later this week. The market anticipated that the US economy to create 170K jobs in August. Also, the Chinese Purchasing Managers' Indexes will be in focus. The data will be critical for determining a clear movement for
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