The New Zealand dollar hovered around $0.585 on Monday, holding a three-day slide to its lowest level in over two weeks, weighed down by dovish expectations for the Reserve Bank. Data last week showed the economy contracted more than expected in Q2, while the trade deficit came in above forecasts, leading markets to fully price in a 25bps rate cut in October and assign about a 25% chance of a larger 50bps move. Adding to the pressure, the US dollar rose after Fed Chair Powell noted that inflation risks remain tilted to the upside and described the recent rate cut as a risk management step. Investors now await fresh signals from Fed officials and a key US inflation report later this week. Meanwhile, sentiment was little changed by the PBOC’s decision to leave loan prime rates steady, providing no fresh boost to Chinese demand, even as economic data suggest a deepening slowdown. The Kiwi remains closely tied to Chinese economic signals due to strong trade linkages.