NZD/USD gathers strength above 0.5900 as investors await RBNZ rate decision

• NZD/USD strengthens to around 0.5925 in Tuesday's early Asian session. 
• Traders currently expect a rate cut at the Fed's September 16-17 meeting.
• The RBNZ is set to lower the OCR by 25 basis points to 3.0% on Wednesday.

The NZD/USD pair gains ground to near 0.5925 during the early Asian session on Tuesday. The US Dollar (USD) softens against the New Zealand Dollar (NZD) as a slew of US economic data keeps the case for a September Federal Reserve (Fed) interest rate cut intact. Traders will closely monitor the Reserve Bank of New Zealand (RBNZ) interest rate decision and the FOMC Minutes later on Wednesday. 

A jump in US wholesale prices last month and a solid increase in July's Retail Sales reports dimmed the prospect of an oversized 50 basis points (bps) Fed cut. However, investors still anticipate rate reductions this year, which might undermine the Greenback and act as a tailwind for the pair. 

Money markets are now pricing in nearly an 83% possibility of a 25 basis points (bps) Fed rate cut in September, according to the CME FedWatch tool. Traders will take more cues from the Jackson Hole Economic Policy Symposium, with Fed Chair Jerome Powell's speech keenly watched for guidance on a September interest-rate cut after recent US data.

On the Kiwi front, the RBNZ is expected to cut the Official Cash Rate (OCR) at its August meeting on Wednesday, resuming its easing cycle after a pause in July as the economy shows signs of stalling. Investors will keep an eye on the fresh economic forecasts, along with the Press Conference from Governor Christian Hawkesby. The dovish remarks from the New Zealand central bank could drag the NZD lower against the USD in the near term.