NZD/USD weakens below 0.6250, eyes on US NFP data

• NZD/USD softens around 0.6220 in Friday's Asian session. 
• The pessimistic New Zealand growth outlook and cautious mood weigh on the Kiwi. 
• Traders will keep an eye on the US employment data for August on Friday. 

The NZD/USD pair trades with mild losses near 0.6220 during the Asian session on Friday. The cautious mood ahead of the key US employment data might provide some support to the US Dollar (USD). The US August Nonfarm Payrolls (NFP) will take center stage on Friday. 

NZIER forecasts New Zealand's Gross Domestic Product (GDP) growth to remain weak over the coming year, contributing to a further reduction in inflation. The Reserve Bank of New Zealand (RBNZ) is expected to cut another interest rate in October amid the expectation that inflation will fall within the target band by year's end. This, in turn, might undermine the Kiwi. 

Furthermore, the renewed concerns about the economic slowdown in China and the cautious sentiment weigh on riskier assets like the New Zealand Dollar (NZD). Bank of America Global Research analysts cut China's GDP forecasts from 5.0% to 4.8%.

On the USD's front, markets expect the US Federal Reserve (Fed) to start easing its monetary policy in September. The markets are now pricing in nearly 59% odds of a 25 basis points (bps) rate cut by the Fed in September, while the chance of a 50 bps reduction stands at 41%, according to the CME FedWatch tool. 

All eyes will be on the US employment data for August, which is due on Friday. A disappointing outcome could prompt the market to price in a 50 basis points (bps) rate cut in September. The Greenback might face further selling pressure amid heightened expectations of Fed rate cuts.