• NZD/USD holds steady around in Wednesday’s Asian session. 
• The US October CPI inflation report will be closely watched on Wednesday.
• Trump’s tariff plans might cap the upside for the Kiwi in the near term. 

The NZD/USD pair trades flat near 0.5930 during the Asian trading hours on Wednesday. However, the upside of the pair might be limited amid a strengthening of the US Dollar (USD). Traders brace for the US October Consumer Price Index (CPI) and Fedspeak later on Wednesday. 

The expectation that inflationary import tariffs from Republican President-elect Donald Trump would push up prices and leave the Federal Reserve's (Fed) less scope to cut interest rates boosts the USD broadly. However, the attention will shift to the CPI inflation report. The core gauge is expected to rise 0.3% MoM in October. Any signs of hotter inflation could further reduce the chance of a December easing, lifting the Greenback. On the other hand, the softer outcome could prompt traders to raise their bets on Fed rate reductions in December. 

"Focus is likely to shift back to inflation and Fed policy in the latter part of the week, but whether that brings an unwinding of Trump trades remains to be seen," noted Charu Chanana, chief investment strategist at Saxo.