The Reserve Bank of New Zealand (RBNZ) kept the interest rate at 5.5% last week. Policymakers at the RBNZ believe that inflation rates remain high and there might be a need for a more aggressive policy stance, further bolstering the New Zealand dollar (NZD).

Speculation from one of the Federal Reserve policymakers led investors to anticipate that the US central bank might adopt a more aggressive monetary policy and could potentially start raising rates as early as March next year. However, Fed Chair Jerome Powell stated on Friday that it would be premature to accelerate additional rate hikes or implement rate cuts anytime soon.

Investors are closely monitoring the US factory orders in October and key releases scheduled for this week include New Zealand's consumer price index (CPI), US services PMI, and the non-farm payrolls (NFP) report, expected to show an addition of 180,000 jobs in November.