• NZD/USD drifts lower for the second straight day and drops to a one-week low on Tuesday.
• Retreating US bond yields undermines the USD and helps limit the downside for the major.
• Traders look to the US macro data for a fresh impetus ahead of the RBNZ on Wednesday.

The NZD/USD pair remains under some selling pressure for the second straight day on Tuesday and drops to a one-week low, around mid-0.6100s during the Asian session. Spot prices, however, recover a few pips from the daily trough in the wake of a modest US Dollar (USD) downtick and currently trade around the 0.6165 region, down just over 0.10% for the day.

The USD Index (DXY), which tracks the Greenback against a basket of currencies, remains depressed amid a fresh leg down in the US Treasury bond yields, which, in turn, helps limit the downside for the NZD/USD pair. Any meaningful downfall for the USD, however, still seems elusive as investors now seem convinced that the Federal Reserve (Fed) will keep interest rates higher for longer on the back of sticky inflation and a still-resilient US economy.

The Fed's hawkish outlook should act as a tailwind for the US bond yields and the buck, warranting caution before positioning for the resumption of the NZD/USD pair's recent strong move up witnessed over the past two weeks or so, from sub-0.6100 levels. Traders might also prefer to wait on the sidelines ahead of the key central bank event risk – the Reserve Bank of New Zealand (RBNZ) policy decision, scheduled to be announced on Wednesday.

In the meantime, traders on Tuesday will take cues from the US macro data– Durable Goods Orders, the Conference Board's Consumer Confidence Index and the Richmond Manufacturing Index. The focus, however, will remain glued to the US Personal Consumption Expenditures (PCE) Price Index on Thursday, which should influence the Fed's future policy decisions. This, in turn, will provide a fresh impetus to the USD and the NZD/USD pair.