New Zealand Dollar remains strong after PBoC holds Loan Prime Rates steady

• The New Zealand Dollar gains momentum in Tuesday’s Asian session.
• The positive risk sentiment weighs on the US Dollar and lifts NZD/USD. 
• Investors await the PBoC rate decision ahead of Fedspeak on Tuesday. 

The New Zealand Dollar (NZD) trades in positive territory for the third consecutive day on Tuesday. The risk-on sentiment in global markets and easing geopolitical risks in the Middle East continue to undermine the Greenback. Nonetheless, the dovish remarks from the Reserve Bank of New Zealand (RBNZ) after a surprise rate cut last week might cap the pair’s upside. RBNZ Governor Adrian Orr said on Monday that he is more convinced that inflation has returned to the 1-3% target area, boosting the likelihood of more rate reductions in the future.

Looking ahead, investors will keep an eye on the People’s Bank of China’s (PBoC) Interest Rate Decision, along with the Fed’s Raphael Bostic and Michael Barr speeches on Tuesday. On Friday, New Zealand’s Retail Sales data and Fed Chair Powell’s speech at the Jackson Hole symposium will be in the spotlight.