• The New Zealand Dollar edges lower in Friday’s early Asian session. 
• A fall in New Zealand’s two-year inflation expectations and a firmer US Dollar weigh on the pair. 
• Traders await the Chinese CPI and PPI data, which are due on Friday. 

The New Zealand Dollar (NZD) trades with a mild bearish bias on Friday amid renewed US Dollar (USD) demand. The Greenback advances to a weekly high as the recent US Initial Jobless Claims ease some fears about the US labor market. A fall in New Zealand's two-year inflation expectations might cap the upside for the NZD. Additionally, the heightened geopolitical risks in the Middle East could weigh on riskier assets like the Kiwi and create a headwind for NZD/USD. 

On the other hand, a stronger-than-expected New Zealand employment report earlier this week threw cold water on expectations of the Reserve Bank of New Zealand (RBNZ) interest rate cut in the near term. The upbeat reading could be enough to spur another bullish run for the Kiwi in the near term. Traders will keep an eye on Chinese economic data on Friday, including Consumer Price Index (CPI) and Producer Price Index (PPI) for July. Any signs of recovery in the Chinese economy could lift the Kiwi as China is New Zealand's largest trading partner.