• NZD/USD recovers to near 0.6215 in Friday’s early Asian session. 
• Reduced bets of Fed deeper rate cuts and the cautious mood might underpin the USD and cap NZD/USD’s upside.
• The RBNZ will likely cut its OCR by 50 bps next week. 

The NZD/USD pair edges higher to around 0.6215 on Friday during the early Asian trading hours. The cautious mood ahead of the key US employment data on Friday and the growing bets of the Reserve Bank of New Zealand (RBNZ) rate cut next week might cap the pair’s upside. 

Federal Reserve Bank of Chicago President Austan Goolsbee reiterated on Thursday that the interest rates need to come down over the next year by “a lot.” Goolsbee further stated that he’d like to keep the unemployment rate at 4.2% from rising any further. Meanwhile, Richmond Fed President Thomas Barkin said on Wednesday that a jumbo rate cut last month was an acknowledgement that its policy rate was "out of sync" with where the economy stands but shouldn't be taken as a sign that the battle with inflation is finished. 

Traders await the US employment data for fresh impetus. The US economy is expected to see 140K jobs added in September. While the Unemployment Rate is expected to remain unchanged at 4.2% in the same period. 

The rising geopolitical tensions in the Middle East and the uncertainty around the US elections might support the US Dollar in the near term. After carrying out further airstrikes in Lebanon's capital on Thursday, the Israeli military vows to continue attacking Hezbollah targets in Beirut and southern Lebanon. An attack in central Beirut killed nine people, marking the first time Israel has targeted the city since 2006, per CNN.