• NZD/USD turns lower for the third straight day and drops to over a two-month trough. 
• Bets for an early RBNZ rate cut and China’s economic woes continue to weigh on the Kiwi.
• Dovish Fed expectations and US politics undermine the USD, lending support to the pair.

The NZD/USD pair attracts fresh sellers following an Asian session uptick to the 0.6025-0.6030 region and turns lower for the third successive day on Monday. This also marks the fifth day of a negative move in the previous six and drags spot prices to the lowest level since May 14 in the last hour, with bears now awaiting acceptance below the 0.6000 psychological mark before positioning for further losses. 

The New Zealand Dollar (NZD) continues with its relative underperformance in the wake of bets that the Reserve Bank of New Zealand (RBNZ) will cut interest rates soon in the wake of the weaker CPI report released last week. Apart from this, worries about a slowdown in China – the world's second-largest economy – dents demand for antipodean currencies, including the Kiwi, and contributes to the offered tone surrounding the NZD/USD pair.

The US Dollar (USD), on the other hand, meets with a fresh supply on the first day of a new week in reaction to the US political development over the weekend and dovish Federal Reserve (Fed) expectations. In fact, US President Joe Biden's exit from the presidential race on Sunday prompts investors to unwind some trades betting on a Trump victory. Furthermore, the markets have fully priced in a Fed rate cut move at the September policy meeting.