NZD/USD posts modest gains above 0.6250, focus on US GDP data, Fed's Powell speech

• NZD/USD trades with mild gains near 0.6260 in Thursday's Asian session. 
• Fed's Kugler said she strongly supported half-point rate cut. 
• China's rate cuts and new stimulus measures support the Kiwi. 

The NZD/USD pair trades with mild positive bias around 0.6260 on Thursday during the Asian trading hours. The uptick of the pair is bolstered by the fresh Chinese stimulus plans and the softer US Dollar (USD) broadly. The final US Gross Domestic Product (GDP) Annualized for the second quarter (Q2) and Federal Reserve (Fed) Chair Jerome Powell's speech will be the highlights on Thursday.

The rising Fed deeper rate cut expectation in November weighs on the Greenback. Meanwhile, the US Dollar Index (DXY), which tracks the USD's value against six major currencies, edges lower to 100.85. Federal Reserve Governor Adriana Kugler said on Wednesday that she will support additional rate cuts going forward, adding that the Fed should keep the focus on reducing inflation and also shift attention to maximum employment. The markets have priced in nearly 57.4% odds of a second 50 bps rate cut in the November meeting, while the chance of 25 bps stands at 42.6%, according to the CME FedWatch Tool. 

The final US Q2 GDP data will be released later in the day, which is projected to expand by 3.0%. On Friday, the attention will shift to the Personal Consumption Expenditures Price Index (PCE), which could be further interpreted by the Fed and might offer some cues about the inflation trajectory in the US. The headline PCE is expected to show an increase of 2.3% YoY in August, while the core PCE is forecast to rise 2.7%. 

On the Kiwi front, the People's Bank of China (PBOC) unleashed a swath of stimulus measures including cuts to its benchmark interest rate and reducing the reserve requirement ratio (RRR). This, in turn, lifts the China-proxy New Zealand Dollar (NZD) as China is the largest export partner to New Zealand. Nonetheless, the cautious mood ahead of the key US data or safe-haven flows amid the ongoing geopolitical risks could support the Greenback and cap the pair's upside.