NZD/USD remains depressed below 0.6150, investors await key US CPI data this week

• NZD/USD weakens around 0.6120 on Tuesday amid the USD softness, down 0.11% on the day. 
• Fed’s Daly said the Fed should cut rates before policymakers are confident that inflation is headed towards 2%.
• The expectation the RBNZ will cut rates earlier than projected exerts some selling pressure on the Kiwi. 

The NZD/USD pair trades on a softer note near 0.6120 despite the weaker US Dollar (USD) during the early Asian trading hours on Tuesday. In the absence of top-tier economic data released from New Zealand on Tuesday, speeches by FOMC members could influence USD demand ahead of the key US economic data, which are due later this week. The revision of US Gross Domestic Product (GDP) for the first quarter (Q1) is due on Thursday, and the Personal Consumption Expenditure (PCE) Price Index will be published on Friday. 

The US Federal Reserve (Fed) officials emphasized that they need to see more progress on inflation before considering a rate cut. Financial markets are now pricing in a 65% odds of a Fed rate cut in September, up from 59.5% at the end of last week, according to the CME FedWatch Tool. The cautious stance from the US central bank continues to support the Greenback in the near term against the Kiwi.