NZD/USD clings to gains near 0.5930 as upbeat mood supports Kiwi

• NZD/USD attracts some buyers as the upbeat market mood benefits the risk-sensitive Kiwi.
• A modest USD uptick caps the currency pair amid bets for another RBNZ rate cut this week.
• The Jackson Hole Symposium will also be looked for Fed rate cut cues and a fresh impetus.

The NZD/USD pair gains some positive traction at the start of a new week and holds comfortably above the 0.5900 mark during the Asian session, though it lacks bullish conviction. The upbeat market mood is seen acting as a tailwind for the risk-sensitive Kiwi, though a modest US Dollar (USD) uptick acts as a headwind for the currency pair as traders seem reluctant ahead of this week’s key central bank events.

The high-stakes meeting between US President Donald Trump and Russian leader Vladimir Putin in Alaska yielded no clear breakthrough. Investors, however, remain hopeful that the start of a dialogue has increased the chances of ending the prolonged war in Ukraine. This, in turn, remains supportive of the upbeat market mood, which, in turn, is seen as a key factor benefiting the New Zealand Dollar (NZD).

The upside for the NZD/USD pair, however, remains capped in the wake of the emergence of some US Dollar (USD) buying. Apart from this, expectations that the Reserve Bank of New Zealand (RBNZ) will lower interest rates at its policy meeting this Wednesday amid weak labour market data, subdued inflation expectations, and slowing wage growth hold back the NZD bulls from placing aggressive bets.

Furthermore, traders might opt to wait for more cues about the Federal Reserve’s (Fed) rate cut path before positioning for the next leg of a directional move for the NZD/USD pair. Hence, the focus will remain glued to comments from Fed Chair Jerome Powell at the upcoming Jackson Hole Symposium, which will influence the USD price dynamics and provide some meaningful impetus to the currency pair.