• NZD/USD drifts lower amid a modest USD uptick, though the downside seems limited.
• The optimism over additional stimulus from China should act as a tailwind for the Kiwi.
• Dovish Fed expectations to cap the USD and lend some support to the currency pair.

The NZD/USD pair attracts some sellers near the 0.6335 region during the Asian session on Friday and reverses a part of the previous day's strong move up. Spot prices currently trade around the 0.6300 mark, down 0.30% for the day, though remain within the striking distance of the YTD peak touched earlier this week. 

The US Dollar (USD) ticks higher in a familiar range amid some repositioning ahead of the crucial US inflation data and turns out to be a key factor exerting some downward pressure on the NZD/USD pair. The US Personal Consumption Expenditure (PCE) Price Index is due for release later today and will be looked upon for cues about the Federal Reserve's (Fed) rate-cut path. This, in turn, will play a key role in influencing the near-term USD price dynamics and provide some meaningful impetus to the currency pair. 

Heading into the key data risk, bets for a more aggressive policy easing by the Fed might keep the buck confined in a familiar range held over the past two weeks or so and closer to the YTD low touched last week. In fact, the markets are currently pricing in over a 50% chance for another oversized interest rate cut at the next FOMC policy meeting in November. This overshadowed Thursday's better-than-expected US macro data, which, along with the upbeat market mood, should cap the upside for the safe-haven buck.