New Zealand Exchange Rate - The NZD/USD currency pair attracted new buyers early this week, halting Friday's decline from 0.6015, the highest level since August 11. The spot price during the Asian session was around 0.5950-0.5955, up nearly 0.20% for the day, supported by a weakening US Dollar (USD).
 
The mixed monthly US employment report released on Friday confirmed that the Federal Reserve (The Fed) would keep interest rates stable during the September meeting, failing to help the USD regain strength seen earlier last week, near the August monthly peak.
 
Additionally, optimism regarding more supportive actions from China to bolster economic growth has increased investor confidence, benefiting antipodean currencies, including the New Zealand Dollar (NZD).
 
The National Development and Reform Commission (NDRC), China's main economic planning agency, announced its intention to establish a department specifically to support the pressured private economic sector in the country.
 
This move followed China's increase in local currency liquidity and the easing of some mortgage regulations the previous week, contributing to positive sentiment in the stock market. This optimistic sentiment also weakened the safe-haven Dollar and provided gains for the risk-sensitive Kiwi currency.
 
However, there appear to be limitations on the upside for the NZD/USD pair, so optimistic traders should remain cautious and not expect significant appreciation in the near term.
 
The market seems confident that the Federal Reserve (The Fed) will maintain high interest rates for a longer period and is still considering a possible 25 basis point rate hike by the end of this year. This hawkish outlook continues to support the US Dollar's strength and will limit further upside potential for this currency pair.
 
With the absence of impactful economic data announcements and a bank holiday in the United States, given the fundamental context mentioned above, it would be wise to wait for confirmation of strong buying activity to ensure that the NZD/USD pair has reached its low point.
 
Peringatan!
 
This analysis is based on fundamental and technical perspectives from trusted sources and is not intended as advice or an invitation. Always remember that this content aims to enrich the reader's information. Always conduct independent research on other forex information as a reference for your trading.
 
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