NZD/USD attracts some buyers above 0.6050 as China cuts Loan Prime Rates by 25 bps

• NZD/USD gains ground to around 0.6075 in Monday's Asian session. 
• The Chinese central bank reduced the 1-year Loan Prime Rate to 3.10% from 3.35%, bigger than expected. 
• Expectations for a less aggressive Fed easing might support the USD. 

The NZD/USD pair trades in positive territory near 0.6075 during the early Asian session on Monday. The pair edges higher amid the softer US Dollar (USD) broadly and the announcement of China rate cuts. Later on Monday, the Federal Reserve (Fed) Neel Kashkari and Jeffrey Schmid are scheduled to speak. 

On Monday, the People's Bank of China (PBoC) decided to cut the one-year Loan Prime Rate (LPR) by 25 basis points (bps) from 3.35% to 3.10% and cut the five-year LPR from 3.85% to 3.60%. China's latest move to revive growth and fight off deflation is likely to support New Zealand (NZD) as China is a major trading partner for New Zealand. 

However, the rising expectation of more aggressive easing from the  Reserve Bank of New Zealand (RBNZ) amid a fall in inflation to the central bank's target range of 1% to 3% in the third quarter could cap the upside for the NZD. 

On the other hand, bets for a less aggressive Fed policy easing might lift the Greenback against the Kiwi. The chance of an additional quarter-point rate cut in November stands at more than 90%. Financial markets have priced in two 25 basis points (bps) interest rate cuts before the end of 2024 and further rate cuts next year, likely bringing the policy rate to a 3.25%-3.5% range by September 2025, per Reuters.