• NZD/USD depreciates due to market caution ahead of August’s US Personal Consumption Expenditures Price Index data.
• The upside of the US Dollar could be limited due to the dovish Fedspeak.
• The ANZ Roy Morgan Consumer Confidence Index rose to 95.1 points in September, from 92.2 prior.

NZD/USD retraces its recent gains, trading around 0.6300 during the European hours on Friday. This downside is attributed to the improved US Dollar (USD) amid market caution ahead of the US Personal Consumption Expenditures (PCE) Price Index data for August. The Fed’s preferred inflation indicator is scheduled to be released later in the North American session.

On the data front, the US Gross Domestic Product Annualized increased at a rate of 3.0% in the second quarter, as estimated, according to the US Bureau of Economic Analysis (BEA) on Thursday. Meanwhile, the GDP Price Index rose 2.5% in the second quarter.

Additionally, US Initial Jobless Claims for the week ending September 20 were reported at 218K, according to the US Department of Labor (DoL). This figure came in below the initial consensus of 225K and was lower than the previous week's revised number of 222K (previously reported as 219K).

However, the US Dollar might have received downward pressure following the dovish remarks from the US Federal Reserve (Fed) officials. According to Reuters, Fed Governor Lisa Cook stated on Thursday that she supported last week's 50 basis point (bps) interest rate cut, citing increased "downside risks" to employment.