NZD/USD extends downside below 0.6300 on firmer US Dollar

• NZD/USD trades in negative territory for the third consecutive day around 0.6260 in Thursday's early Asian session. 
• The US private sector added more jobs than expected in September.
• The RBNZ is anticipated to cut more rates next week. 

The NZD/USD pair attracts some sellers to near 0.6260 during the early Asian session on Thursday. The stronger US Dollar (USD) and rising US yields weigh on the pair. 

The Greenback edges higher after the encouraging report on Wednesday. Private sector employment in the US climbed 143,000 in September and above the estimated 120,000 jobs, the Automatic Data Processing (ADP) reported on Wednesday. This report indicated the labor market is holding its ground despite some signs of weakness. 

Richmond Fed President Thomas Barkin said on Wednesday that the Fed's fight to return inflation to its 2% target may take longer than expected to complete and limit how far interest rates can be cut, per Reuters. Interest rate futures contracts have priced in a nearly 35.6% chance of a half-point cut in November, versus a 64.4% possibility of a quarter-point cut, according to the CME FedWatch Tool.

Market players will monitor the US September ISM Services Purchasing Managers Index (PMI) on Thursday, which is expected to improve to 51.7 in September from 51.5 in August. Additionally, the weekly Initial Jobless Claims and the final S&P Global Services PMI will be published. 

The New Zealand Dollar (NZD) remains under selling pressure amid rising bets of a more aggressive rate reduction from the Reserve Bank of New Zealand (RBNZ) at its upcoming next week, with an 87% odds of a 50-basis points (bps) rate cut being priced in.