• NZD/USD holds positive ground around 0.6210 in Tuesday’s Asian session. 
• The rising expectation of a Fed rate cut weighs on USD and supports NZD/USD. 
• Geopolitical tension in the Middle East might boost safe-haven flows and help limit the USD’s losses. 

The NZD/USD pair edges higher to near 0.6210 during the Asian trading hours on Tuesday. The Federal Reserve’s (Fed) dovish stance and firmer US rate cut expectation continue to undermine the US Dollar (USD) broadly. Traders will closely monitor the key US data, including advanced Gross Domestic Product (GDP) Annualized for the second quarter (Q2) and Personal Consumption Expenditures (PCE) Price Index data, which are due later this week.

San Francisco Fed President Mary Daly said on Monday that she believes it’s appropriate for the Fed to begin cutting interest rates. Her dovish remarks echoed comments from Fed Chair Jerome Powell at the Jackson Hole symposium on Friday. Powell has already concluded that the Fed has brought down inflation while preserving labor market strength. Financial markets have fully priced in a 25 basis points (bps) rate cut, while the chance of a deeper rate cut stands at 30%, down from 36.5 % last Friday, according to the CME FedWatch Tool.