NZD/USD holds steady above 0.5860 ahead of US GDP release

• NZD/USD flat lines near 0.5860 in Thursday's early Asian session. 
• The Fed's John Williams stressed the central bank's independence as Trump moves to fire Lisa Cook. 
• Expectations of further RBNZ monetary easing might cap the NZD's upside. 

The NZD/USD pair trades on a flat note around 0.5860 during the early Asian session on Thursday. However, concerns about the US Federal Reserve's (Fed) independence could weigh on the US Dollar (USD) after US President Donald Trump on Monday announced he was removing Lisa Cook over claims of mortgage borrowing impropriety.

Traders continue to assess Trump's move to fire Cook. Late Tuesday, Trump said that he will soon have a "majority" of his own nominees on the Fed board of governors who will back his desire to cut the interest rates. Meanwhile, New York Fed President John Williams on Wednesday emphasized the importance of central bank independence as Trump looks to exert control over monetary policy. Worries over the Fed's independence could undermine the Greenback against the New Zealand Dollar (NZD) in the near term.

On the other hand, the upside for the Kiwi might be limited after the Reserve Bank of New Zealand (RBNZ) cut its policy rate last week and signaled further reductions in coming months as policymakers warned of domestic and global headwinds to growth. RBNZ Governor Christian Hawkesby noted that the outlook is data-dependent, though he further stated that if businesses and consumers remain cautious and need more support, that might be something that prompts more action.

Looking ahead, the second estimate of US GDP will be published later on Thursday. The US economy is projected to grow at an annual rate of 3.1% in the second quarter (Q2). Also, the weekly Initial Jobless Claims and Pending Home Sales reports will be released on the same day.