• NZD/USD meets with a fresh supply on Tuesday amid some follow-through USD buying.
• Bets for an early RBNZ rate cut and China’s economic woes contribute to the downfall.
• Traders now look forward to Fed Chair Jerome Powell’s speech for short-term impetus.

The NZD/USD pair comes under some renewed selling pressure during the Asian session on Tuesday and momentarily slides below mid-0.6000s for the first time since mid-May. Spot prices now seem to have confirmed a breakdown through the 50-day Simple Moving Average (SMA) and seem vulnerable to prolong a three-week-old downtrend amid some follow-through US Dollar (USD) buying.

Concerns that a Trump presidency would be more inflationary than a Biden administration pushed the yield on the benchmark 10-year government bond to its highest level in a month on Monday. This, in turn, assists the USD to build on the overnight solid rebound from a multi-day low. The New Zealand Dollar (NZD), on the other hand, is weighed down by expectations that the Reserve Bank of New Zealand (RBNZ) will cut rates earlier than projected.

Apart from this, China's economic woes further contribute to driving flows away from antipodean currencies, including the Kiwi. The USD bulls, meanwhile, might hold back from placing aggressive bets and prefer to wait for more cues about the Federal Reserve's (Fed) further policy decisions amid rising bets for an imminent start of the rate-cutting cycle in September. Hence, the focus will remain glued to Fed Chair Jerome Powell's speech later today.