NZD/USD continues the losing streak, falls below 0.5900

• NZD/USD trades lower around 0.5880 after China’s downbeat Caixin Services PMI.
• Moderate jobs data contribute to support the US Dollar (USD).
• Investors seem to accept the nearing end of the rate-hike cycle by the Fed.
• China’s Country Garden made delayed interest payments, avoiding an immediate default.

NZD/USD extends its losing streak for the third consecutive day, trading lower around 0.5890 during the Asian session on Tuesday. The pair is experiencing downward pressure due to China’s downbeat Caixin Services PMI for August, which declined to the reading of 51.8 from 54.1 prior. The report reinforces worries about deteriorating economic conditions in the world’s second-largest economy, which exerts downward pressure on the NZD/USD pair.

Additionally, the moderate labor growth in August and the recovery in US Treasury yields helped the buck to maintain its strength against the New Zealand Dollar (NZD).

The Kiwi pair was not able to cheer the market optimism due to China’s stimulus measures and positive developments surrounding the Country Garden. China’s largest property developer informed its creditors on Tuesday that it had successfully made a delayed interest payment. This will avoid an immediate default on its debts and ensure the company’s financial viability, at least for the time being.

US Dollar Index (DXY), which measures the Greenback against the basket of six major currencies, trades higher around 104.30 at the time of writing.

Moreover, investors appear to accept the potential approach of the end of the rate-hike cycle by the US Federal Reserve (Fed). This sentiment could encourage sellers of the NZD/USD pair to enter the market and weaken the currency pair further.

Market participants expect that the Fed will keep interest rates unchanged during its policy meeting in September due to modest jobs data. Also, Federal Reserve Bank of Cleveland President Loretta J. Mester expressed support for the Fed’s hawkish stance and dismissed any inclination towards rate cuts in a speech on Friday.

Market participants will likely watch the release of US Factory Orders (Jul) scheduled to be released later in the North American session. On Wednesday, US ISM Services PMI (Aug) will be eyed as it could provide valuable guidance to track the Greenback’s trajectory.