NZD/USD consolidates above 0.5850 on risk appetite, Fed cuts hopes

• The New Zealand Dollar appreciates against the US Dollar following Trump's dovish pivot.
• Powell rattled markets on Friday, opening the doors for interest rate cuts.
• New Zealand's stronger-than-expected retail sales figures have provided an additional supoport to the NZD.

New Zealand Dollar holds a moderately positive tone against the US Dollar on Monday, extending the rebound from Friday's lows sub-1.5800 to the upper range of the 1.5800s. A softer Dollar amid rising hopes of Fed cuts and the upbeat New Zealand retail consumption data is keeping the NZD buoyed.

The Greenback remains depressed on Monday after a sharp reversal last Friday, following dovish comments from the Federal Reserve Chairman, Jerome Powell, at the Jackson Hole meeting of central bankers.

Powell, for the first time this year, showed higher concerns for the downside risks to the economy than for the inflationary impact of tariffs to acknowledge that the bank will be forced to adopt a less restrictive monetary policy to support economic growth.

Powell's change of tone boosted investors' hopes that the bank will cut rates in September, which triggered a risk-on reaction that is still going on on Monday.

In New Zealand, domestic data contributed to underpinning support for the Kiwi. The second quarter's Retail Sales have shown a steady consumer spending with a 0.5% quarterly growth from the 0.8% reading seen in the previous quarter, beating expectations of a slowdown to 0.2%

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