NZD/USD recovery stalls below 0.5925 as the US Dollar picks up from lows

• The New Zealand Dollar treads water below 0.5925 in cautious markets.
• The US Dollar picks up from lows as investors digest US employment figures.
• Traders keep an eye on the US-China trade talks, whose outcome will be determinant to the Kiwi.

The New Zealand Dollar treads water above 0.5900 on Monday's early European session as the market sobers up to the weak US employment figures seen on Friday, and the US Dollar and US Treasury yields pick up from Friday's lows.

The Kiwi jumped about 1.20% on Friday, with the US Dollar tumbling across the board after July's Nonfarm Payrolls report revealed that the economy created much fewer jobs than expected last month, and the figures released in May and June were revised lower by almost 260.000.

The Unemployment Rate increased to 4.2% in July from 4.1% in June, and investors ramped up their bets on an interest rate cut in September, as concerns about a recession returned to the market.

Bets for a Fed cut in September were boosted to above 90% following the data release and are now at 80%, more than twice the 37% chance priced before the NFP release. US Treasury yields tumbled, bringing the US Dollar down with them.

In New Zealand, the calendar has been thin today, and the focus remains on the trade negotiations between the USA and China, New Zealand's leading trading partner. US Treasury Secretary Beseent said that an extension of the trade truce between the world's two major economies is "likely," yet investors are cautious as the clock ticks towards the August 12 deadline.