Adrian Orr, Governor of the Reserve Bank of New Zealand (RBNZ), commented on the bank's plan to begin reducing interest rates within 2025, citing rising inflation as the primary reason for maintaining the current tight monetary policy for a longer period.

Investors are also awaiting information on the stance of the Federal Reserve (Fed) and the upcoming policy decisions. Jerome Powell is scheduled to testify before the U.S. Senate Banking Committee regarding the Fed's semi-annual monetary policy report on Wednesday and Thursday this week. According to the CME FedWatch Tool, there is a 3.0% probability of a 25 bps interest rate cut in March, with probabilities for rate cuts in May and June at 21.8% and 50.9% respectively.

Additionally, China has set a GDP growth target of around 5% for 2024, emphasizing job creation and risk management. China stresses the importance of maintaining proactive fiscal policies and comprehensive monetary measures, which may support the New Zealand dollar (NZD) due to the close business relationship between the two countries.