NZD/USD remains under selling pressure below 0.6000 on rising RBNZ rate cut bets

• NZD/USD trades on a softer note near 0.5975 in Tuesday’s early Asian session, down 0.10% on the day.
• The rising bets on RBNZ rate cuts and surprise rate cuts by the Chinese central bank weigh on the Kiwi.
• Fed officials said the time for a US rate cut is drawing closer.

The NZD/USD pair trades in negative territory for the fourth consecutive day around 0.5975 during the early Asian trading hours on Tuesday. The rising expectation that the Reserve Bank of New Zealand (RBNZ) will cut interest rates sooner than later drags the Kiwi lower against the US Dollar (USD).

The softer New Zealand’s Consumer Price Index (CPI) inflation in the second quarter (Q2) fuelled bets that the RBNZ will cut interest rates sooner than expected. This, in turn, weighs on the New Zealand Dollar (NZD) in the near term. The CPI inflation dropped to 0.4% QoQ in Q2 from 0.6% in Q1, while annualized CPI inflation came in at 3.3% YoY compared to the previous period’s 4.0%.