Investors are awaiting the release of fourth-quarter employment figures, scheduled for Tuesday. New Zealand's unemployment rate has risen rapidly to 4.3% from 3.9% in the third quarter of 2023. The labor cost index continues to expand steadily at a rate of 0.8%. A contraction in labor market data may lead the Reserve Bank of New Zealand (RBNZ) policymakers to consider lowering interest rates.

Non-Farm Payrolls (NFP) data in the United States remains strong in January, directly impacting the NZD/USD pair. Furthermore, expectations of a March interest rate cut have decreased following Jerome Powell's statement confirming no rate cuts in March.

The US Dollar Index (DXY) is trading sideways as investors await the announcement of the Services PMI for January. The service sector accounts for two-thirds of the US economy, with expectations of an increase to 52.0 from 50.6.