You can do HIIT fasted, yes. I would make sure you are getting 10gBCAA's pre cardio and limit HIIT to 20-25 mins, any additional time at moderate intensity.

Fat is muscle sparing so you shouldn't worry about losing muscle at your current bf levels. As the bf drops we can look at modifying the cardio to suit.

The fat burning zone isn't a myth, as such, but one size doesn't fit all in this game.

Diet looks solid, pretty much the same macro's as me at the minute. Keep on it.