• The New Zealand Dollar trades little changed on Monday as markets tread water.
• Kiwi remains on the back foot after recent Fedspeak resurrected the chances of a rate hike. 
• Hawkish commentary from Fed officials has set the US Dollar trending higher against the Kiwi, NZD/USD declines. 

The New Zealand Dollar (NZD) trades flat amid a muted market mood on Monday. Most traders are waiting for bigger macroeconomic data releases scheduled for Tuesday and Wednesday before taking big positions. 

The short-term technical situation is precarious, however, threatening deeper losses on the horizon as price edges ever closer to breaking below a key support level at 0.5874.

Daily digest market movers: New Zealand Dollar flat on Monday

• The New Zealand Dollar trades little changed at the start of the week as traders look ahead to more significant data releases later in the week. 
• NZD could very well be impacted by Chinese Industrial Production and Retail Sales data on Wednesday morning at 02:00 GMT.
• On Monday, China released figures for New Loans in October, which showed a seasonal slowdown in lending to 738.4B from 2310.0B in September, but still more than the 650.0B expected. It suggests credit remained buoyant during the month. 
• China's M2 Money Supply (YoY), showing the amount of money held in most kinds of bank accounts, ticked down to 10.3% in October, compared to 10.4% previously.  
• Downbeat Chinese inflation data had dampened the outlook for global growth, weighing on NZD last week, because New Zealand is a major commodity exporter – especially of dairy products – to China. 
• NZD fell midweek last week on the back of an inflation report from the RBNZ that showed both one-year-out and two-years-out inflation expectations for New Zealand falling in Q3 compared to the previous quarter.
• The lower inflation expectations imply the RBNZ is less likely to raise interest rates, making the country a less attractive place for global investors to park their capital. 
• Inflation expectations have pushed higher in the US after University of Michigan inflation expectations data, released November 10, showed an uptick to 4.4% in November for inflation expected in the year ahead, compared to 4.2% in October and 3.2% in September. 
• This reflects the more hawkish commentary that has been coming out of the Federal Reserve (Fed) recently, which suggests a greater probability the Fed may still raise interest rates before it is done with its tightening cycle. 
• US Inflation data on Tuesday at 13:30 GMT should shine more light on price rises. A rise of 0.1% MoM and 3.3% YoY is expected for headline inflation in October, whilst core is forecast to increase by 0.3% and 4.1%. 

New Zealand Dollar technical analysis: NZD/USD inches lower, threatening more losses

NZD/USD – the number of US Dollars one New Zealand Dollar can buy – edges lower into the 0.5870s on Monday, reaching a key make-or-break level for trend watchers