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• NZD/USD attracts some buyers near the 0.6070-65 area amid a modest USD downtick.
• The Fed’s hawkish outlook should limit the USD losses and cap the upside for the pair. 
• Traders now look to Thursday’s US economic docket ahead of the key US PCE on Friday.

The NZD/USD pair shows some resilience below the 50-day Simple Moving Average (SMA) and stages a modest recovery from the 0.6070-0.6065 area, or the lowest level since mid-May touched during the Asian session on Wednesday. The momentum lifts spot prices to a fresh daily top, around the 0.6085 zone in the last hour and is sponsored by a modest US Dollar (USD) weakness. 

In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, reverses a part of the overnight strong move up to a nearly two-month peak amid bets that the Federal Reserve (Fed) will cut interest rates in September. Apart from this, the USD intraday slide lacks any obvious fundamental catalyst and is more likely to remain limited in the wake of the Fed's hawkish outlook, forecasting only one interest rate cut in 2024. 

Furthermore, the recent comments by a slew of influential FOMC members suggested that the US central bank is in no rush to start its rate-cutting cycle. This remains supportive of elevated US Treasury bond yields, which, along with a slight deterioration in the risk sentiment, could underpin the safe-haven USD. Apart from this, expectations that the Reserve Bank of New Zealand (RBNZ) will cut rates earlier than projected might cap the NZD/USD pair.

Traders might also prefer to wait on the sidelines ahead of the release of the crucial US Personal Consumption Expenditures (PCE) Price Index on Friday before placing fresh directional bets. In the meantime, Thursday's US economic docket – featuring the release of the final Q1 GDP print, Durable Goods Orders, the usual Initial Weekly Jobless Claims and Pending Home Sales – will be looked for short-term opportunities later during the North American session.

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