NZD/USD sets to climb above 0.6000 on upbeat market mood

• NZD/USD aims to continue a three-day winning spell amid a risk-on mood.
• Soft US labor demand tempered wage growth would allow the Fed to keep rates steady further.
• The RBNZ is expected to keep its OCR unchanged at 5.50%, consecutively for the fourth time on November 29.

The NZD/USD pair aims to climb above the psychological resistance of 0.6000. The Kiwi asset is expected to continue its winning spell for the fourth trading session as the market mood is quite upbeat due to expectations that the Federal Reserve (Fed) will not raise interest rates further and that Israel would ceasefire war with Palestine.

S&P500 futures have generated decent gains in the European session, portraying further improvement in the risk-taking ability of the market participants. US equities rose significantly on Friday after the Nonfarm Payrolls (NFP) report portrayed soft labor demand and steady wage growth. Fresh payrolls were 150K in October against expectations of 180K and the former reading of 297K. The Unemployment Rate rose to 3.9% against expectations of 3.8%.

Investors hope that soft labor demand will allow the Fed to keep interest rates unchanged in the range of 5.25-5.50%. Slower monthly wage growth by 0.2% also warranted that current rates by the Fed are sufficiently restrictive.

The US Dollar Index (DXY) edges below the crucial support of 105.00 as demand for safe-haven bets eases. Further action in the US Dollar will be guided by the speech from Fed Chair Jerome Powell, which is scheduled for Wednesday.

On the New Zealand Dollar front, soft labor demand and easing wage growth indicate that the Reserve Bank of New Zealand (RBNZ) will keep interest rates unchanged at 5.50% for a longer period. The RBNZ is expected to keep its Official Cash Rate (OCR) unchanged at 5.50%, consecutively for the fourth time on November 29.