NZD/USD attracts some sellers below 0.5900 despite stronger China's Caixin Manufacturing PMI data

• NZD/USD softens to near 0.5895 in Monday's European session. 
• China's Caixin Manufacturing PMI grew more than expected in November. 
• The US ISM Manufacturing PMI is due later on Monday. 

The NZD/USD pair trades on a softer note around 0.5895 on Monday during the Asian trading hours. The expectation of another rate cut by the Reserve Bank of New Zealand (RBNZ) in February 2025 and Trump tariff threats continue to undermine the pair. The US ISM Manufacturing Purchasing Managers' Index (PMI) for November will be in the spotlight later on Monday. 

The RBNZ Governor Adrian Orr hinted during the press conference last week that another double cut would be possible in February 2025, citing the context of growth in New Zealand. This, in turn, drags the Kiwi lower against the US Dollar (USD) for the time being. Furthermore, Trump has pledged a 25% tariff on all products from Mexico and Canada and an additional 10% tariff on goods from China. The tariffs could lead to a global trade war and may impact the New Zealand economy as China is New Zealand's largest trading partner.

Data released by Caixin Insight Group and S&P Global showed on Monday that the Chinese Manufacturing PMI rose to 51.5 in November versus 50.3 in October, beating the estimation of 50.5. However, the upbeat economic data failed to boost the NZD against the USD amid the cautious mood. 

Traders await the fresh catalysts from the US ISM Manufacturing PMI data on Monday, which is forecasted to improve to 47.5 in November from 46.5 in October. Later this week, the Fed speakers might offer some hints about the US interest rate policy outlook, along with the US employment report for November.