NZD/USD oscillates in a narrow range above the 0.5900 mark, investors await the key US data

• NZD/USD consolidates between 0.5895-0.5916 range
• The US dollar edges lower as the market sentiment improves on Tuesday. 
• Investors await the Labour and economic data release from the US. 

The NZD/USD pair oscillates in a narrow trading band between 0.5895-0.5916 region during the early Asian session on Tuesday. Meanwhile, the US Dollar Index (DXY) loses ground below the 104.00 mark. The major pair currently trades near 1.3596, losing 0.03% for the day.

Regarding the Jackson Hole Symposium, Federal Reserve (Fed) Chairman Jerome Powell stated that the additional rate hike cannot be ruled out if required, it would be determined by incoming data. According to World Interest Rates Probabilities (WIRP), the market discounts modest odds of a hike in September, but the probability of a 25 basis point (bps) hike in November increased to nearly 70%. About the data, the US Dallas Federal Reserve Manufacturing Index for August rose to -17.2 from -20 prior, better than the estimation of -21.6. 

On the other hand, 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 (CSRC) is implementing measures to bolster market confidence in listed companies after the Chinese equities index slumped to nine-month lows. It’s worth noting that the positive headline surrounding China’s economic conditions might lift the China-proxy Kiwi and act as a tailwind for the NZD/USD pair.

Last week, the chief economist of the Reserve Bank of New Zealand (RBNZ) said that policymakers would cut the OCR earlier than signaled if China experienced a more significant slowdown than the RBNZ anticipates.

Market participants await the top-tier economic calendar releases from the US. The JOLTs Job Openings figures from July, ADP Employment Change, and Nonfarm Payrolls will be due later this week. Also, the US Gross Domestic Product (GDP), ISM PMI, and Core Personal Consumption Expenditures (PCE) will be in the traders’ focus. Furthermore, New Zealand’s Building Permits MoM for July and Consumer Confidence will be released on Tuesday and Friday, respectively.