NZD/USD consolidates its recent gains above 0.5970 ahead of Jackson Hole Symposium

• NZD/USD takes a breather below the 0.6000 level amid the US Dollar’s weakness.
• The US business activity expanded at a slower rate in August.
• New Zealand Retail Sales QoQ data showed an increase to -1.0 from -1.6%.
• Market players await the US weekly Jobless Claims, Durable Goods Orders, the Jackson Hole Symposium.

The NZD/USD pair consolidates its recent gain below the 0.6000 mark during the early Asian session on Thursday. The weakening of the US dollar is driven by the worse-than-expected US PMI data. The US dollar Index (DXY), which measures the value of USD against a basket of currencies used by US trade partners, trades near 103.35 after retreating from a two-month high of 103.98. The pair currently trades around 0.5975, losing 0.09% on the day.

The Greenback declined against its rivals after the report indicated that the US business activity expanded at a slower rate in August. The flash S&P Global Composite PMI fell to 50.4 versus 52.0 prior and worse than the market expectation of 52.0. This represents the largest decline since November 2022. Meanwhile, S&P Global Manufacturing PMI declined to 47 from 49 in the previous month. While the Services PMI fell to 51 from 52.4 prior.

On Wednesday, Statistics New Zealand released second-quarter Retail Sales QoQ figures, showing an increase to -1.0 from -1.6% prior and better than expected of -2.6%. The chief economist of the Reserve Bank of New Zealand (RBNZ) said that policymakers would lower the OCR sooner than we have signaled if China experienced a more significant deceleration than the RBNZ anticipates.

In the quiet day of economic data released from New Zealand, market players will focus on the US weekly Jobless Claims and Durable Goods Orders due on Thursday. Also, the Jackson Hole Symposium will be a closely watched event ahead of the Federal Reserve (Fed) Chairman Jerome Powell's Speech on Friday. The events will be critical for determining a clear movement for the NZD/USD pair.