NZD/USD holds negative ground near 0.5850 despite upbeat Chinese Services PMI data

• NZD/USD softens to around 0.5860 in Wednesday's early Asian session.
• China's RatingDog Services PMI rose to 53 in August, stronger than expected. 
• Rising debt piles in many major economies concern investors, boosting the US Dollar's safe-haven appeal. 

The NZD/USD pair trades in negative territory near 0.5860 during the early Asian session on Wednesday. The New Zealand Dollar (NZD) remains weak despite the upbeat China's Caixin Services Purchasing Managers Index (PMI). Traders brace for the US JOLTS Job Openings and the Fed Beige Book, which are due later on Wednesday. 

Data released by Ratings Dog on Wednesday showed that China's Services PMI unexpectedly climbed to 53.0 in August from 52.6 in July. This figure came in stronger than the market expectation of 52.5 in the reported period. However, this encouraging Chinese economic data fails to boost the China-proxy Kiwi as traders turn cautious. 

The global bond market sell-off is fueling risk aversion, benefiting the safe-haven currency like the US Dollar (USD), and acting as a headwind for the pair. Investors are concerned about rising debt piles in many major economies. "The risk-off sentiment today is broader market unease stemming from the bond market," said Marija Veitmane, head of equity research at State Street Markets.

On the other hand, rising bets of the Federal Reserve (Fed) rate cut in the September meeting and dovish remarks from Fed policymakers could undermine the Greenback in the near term. Money markets are currently pricing in nearly a 91% chance that the Fed will cut rates by 25 basis points (bps) this month, up from 85% odds last week, according to the CME FedWatch tool.