NZD/USD jumps above 0.6000 as traders brace for US presidential election

• NZD/USD jumps to the weekly highs near 0.6000 in Monday's early European session. 
• The US presidential election uncertainty weighs on the USD and supports NZD/USD.  
• More dovish stance from the RBNZ might cap the Kiwi's upside. 

The NZD/USD pair rises to near 0.6000 during the early European session on Monday. The weaker Greenback provides some support to the pair. Investors will closely monitor the looming US presidential election on Tuesday for fresh catalysts. This key event could trigger the volatility in the market.  

The decline in the US Dollar (USD) is likely due to a poll released over the weekend that reduced the probability of Republican Donald Trump winning the elections. Analysts predict that if Trump wins, the USD will rise. Chris Weston, an analyst at broker Pepperstone, said, "A Trump presidency with full control of Congress could be most impactful, as one would expect a solid sell-off in Treasuries resulting in a spike higher in the USD." 

Analysts believe potential uncertainty surrounding the election outcome will not impact the US Federal Reserve (Fed) decision-making process on Thursday. The Fed is expected to cut its benchmark rate by a quarter-point at the November meeting, following a half-point cut in September.

The upside of the New Zealand Dollar (NZD) might be limited due to the rising bets of a more dovish stance from the Reserve Bank of New Zealand (RBNZ). The markets have fully priced in a 50 basis point rate cut in November and currently estimate the reduction in the cash rate from 4.75% to 3.82% by the end of this year.