NZD/USD holds comfortably above 0.6000, multi-week high amid softer USD/risk-on mood

• A combination of supporting factors pushes NZD/USD higher for the fourth straight day. 
• Diminishing odds for a rate cut by RBNZ, stronger Chinese inflation data boosts the Kiwi.
• Dovish Fed expectations and the upbeat mood weigh on the USD and remain supportive. 

The NZD/USD pair builds on this week's solid recovery from the 0.5850 area, or its lowest level since early November 2023 and gains positive traction for the fourth successive day on Friday. Spot prices cling to intraday gains during the early European session and currently trade around the 0.6025-0.6030 region, just below a three-week high. 

The New Zealand Dollar (NZD) continues to be underpinned by Wednesday's better-than-expected employment details, which lowered the likelihood of a rate cut by the Reserve Bank of New Zealand (RBNZ). Furthermore, stronger-than-expected Chinese inflation figures provide an additional boost to antipodean currencies, including the Kiwi, which, along with a modest US Dollar (USD) downtick, continues to push the NZD/USD pair higher.

Despite Thursday's upbeat US labor market report, investors are still pricing in the possibility of a 50 basis points (bps) interest rate cut by the Federal Reserve (Fed) in September. This, in turn, triggers a fresh leg down in the US Treasury bond yields and drags the USD away from the weekly peak touched on Thursday. Furthermore, a positive risk tone undermines the safe-haven buck and contributes to driving flows towards the risk-sensitive Kiwi. 

Meanwhile, the NZD/USD pair's positive move could also be attributed to some technical buying above the 0.6000 psychological mark. Nevertheless, spot prices remain on track to register strong gains for the second straight week as the focus now shifts to the crucial RBNZ rate decision and the US consumer inflation figures, both due on Wednesday. The key central bank event risk and the US macro data should provide a fresh directional impetus to spot prices.