• NZD/USD struggles to attract any meaningful buyers amid some follow-through USD strength.
• Reduced bets for a 50 bps Fed rate cut in September push the USD closer to the monthly top.
• Traders now look to Chinese trade data, though the focus remains on US CPI on Wednesday.

The NZD/USD pair remains under some selling pressure for the third straight day on Tuesday and currently trades around the 0.6140-0.6135 region, just above a three-week low touched the previous day. 

Traders have been scaling back their bets for a larger, 50 basis points (bps) interest rate cut by the Federal Reserve (Fed) in September following the release of mixed US jobs report on Friday. This, in turn, pushes the USD Index (DXY), which tracks the Greenback against a basket of currencies, closer to the monthly peak touched last week and is seen weighing on the NZD/USD pair. That said, bets for an imminent start of the Fed's rate-cutting cycle, along with a positive risk tone, could cap the USD and lend support to the currency pair. 

Investors also seem reluctant and prefer to wait for the release of the US inflation figures before placing fresh directional bets around the NZD/USD pair. The crucial US Consumer Price Index (CPI) is due on Wednesday, which, along with the Producer Price Index (PPI) on Thursday, might influence market expectations about the size of the Fed's rate cut move later this month and the future policy path. This, in turn, will play a key role in driving the USD demand and help in determining the near-term trajectory for the currency pair.