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The NZD/USD pair attracts some follow-through buyers for the second straight day and climbs to a one-week high during the Asian session on Tuesday. Spot prices now look to build on the positive momentum beyond the 0.5800 mark amid renewed US Dollar (USD) selling bias.

US Treasury Secretary Scott Bessent floated the idea that the new Federal Reserve (Fed) chair could scrap the dot plot and also flagged possible changes to the central bank's inflation framework and communications. This comes on top of expectations that the new Fed chair will be an uber-dovish and slash interest rates regardless of the economic fundamentals, which, in turn, fails to assist the USD to capitalize on last week's recovery from its lowest level since early October.

Apart from this, a generally positive tone around the equity markets undermines the Greenback's safe-haven status and benefits the risk-sensitive Kiwi. Furthermore, the Reserve Bank of New Zealand's (RBNZ) hawkish stance on the future policy path acts as a tailwind for the New Zealand Dollar (NZD). RBNZ Governor Ann Breman had said that the Official Cash Rate (OCR) is likely to remain at its current level for an extended period if economic conditions unfold as expected.

This, in turn, validates the near-term positive outlook for the NZD/USD pair and backs the case for a further appreciating move. Traders now look forward to the US economic docket – featuring the delayed release of the prelim Q3 GDP report and Durable Goods Orders later during the North American session. Apart from this, comments from influential FOMC members would drive the USD demand, which, along with the broader risk sentiment, should produce some impetus.

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