NZD/USD strengthens to near 0.6000 amid concerns over Fed's independence

• NZD/USD gathers strength to near 0.6005 in Wednesday's early session. 
• Struggle over the Fed's independence continues to undermine the US Dollar. 
• Cooler CPI inflation in New Zealand hints at early rate cuts by RBNZ. 

The NZD/USD pair trades in positive territory for the fourth consecutive day near 0.6005 during the Asian trading hours on Wednesday. Renewed concerns over the US Federal Reserve (Fed) independence drag the US Dollar (USD) lower against the New Zealand Dollar (NZD). 

Investors will closely monitor whether the US central bank can maintain its independence amid mounting pressures and a situation that reflects the challenges facing the US economy. US Treasury Secretary Scott Bessent on Monday said the Fed's independence on monetary policy is threatened by its "mandate creep" into non-policy areas, and he called on the US central bank to conduct an exhaustive review of those operations.

Meanwhile, Fed Vice Chair Michelle Bowman on Tuesday said the Fed's ability to set monetary policy without political interference is "very important.

Nonetheless, softer New Zealand CPI inflation has fueled the prospect of a Reserve Bank of New Zealand (RBNZ) interest rate cut in August. Traders expect the New Zealand central bank to deliver at least one additional rate cut over the remainder of the year. Traders have priced in nearly 85% odds that the RBNZ will reduce the cash rate by a further 25 basis points (bps) in the August meeting.