• NZD/USD trades on a stronger note near 0.5880 in Tuesday’s Asian session. 
• The Fed will likely hold rates steady at its July meeting on Wednesday. 
• Rising speculation of an early rate cut by RBNZ and fear of Chinese economic slowdown might weigh on the Kiwi. 

The NZD/USD pair recovers some lost ground around 0.5880 during the Asian trading hours on Tuesday. However, the upside of the pair might be limited as traders prefer to wait on the sidelines ahead of the Federal Reserve (Fed) monetary policy meeting on Wednesday.

The US Fed is widely expected to hold the interest rate in the range of 5.25%-5.50% at a two-day FOMC meeting that concludes on Wednesday as Fed Chair Jerome Powell signalled that he wanted more evidence that inflation is on course to the 2% target before trimming. "The case to cut is already strong, and the Fed will likely use the July meeting to plant a seed that a cut in September is on the table," said Ryan Sweet, chief US economist at Oxford Economics.