NZD/USD weakens below 0.6200, eyes on US Services PMI data

• NZD/USD trades softer near 0.6195 in Thursday’s early Asian session. 
• The US Job Openings were weaker than expected in July. 
• China's growth pessimism weighs on the Kiwi. 

The NZD/USD pair loses traction around 0.6195 during the early Asian session on Thursday. The concerns about the Chinese economic slowdown weigh on the China-proxy New Zealand Dollar (NZD). Traders will keep an eye on the release of the US ISM Services Purchasing Managers Index (PMI), which is due later on Thursday. 

The US Job openings fell more than expected in July, adding a sign of the labor market softening. The Job Openings and Labor Turnover Survey showed that available positions fell to 7.67 million in July from 7.91 million openings in June, the lowest level since January 2021.

Traders will closely watch the US labor market data on Friday, including the US Nonfarm Payrolls (NFP) and the Unemployment Rate. The US economy is expected to see 161,000 job additions in August, while the unemployment rate is projected to tick lower to 4.2%. Deutsche Bank economists suggested that a weaker NFP reading or a rise in the Unemployment Rate could reinforce market expectations for a 50 bps rate cut by the Federal Reserve (Fed), which might further undermine the Greenback. 

On the Kiwi front, Bank of America Global Research analysts cut China’s GDP forecasts from 5.0% to 4.8%, raising concern about the economic slowdown. Additionally, the Chinese Caixin Services PMI was weaker than expected in August, dropping to 51.6 from 52.1 in July. The negative outlook surrounding the Chinese economy might cap the pair’s upside as China is a major trading partner to New Zealand.