NZD/USD attracts some buyers to near 0.5600, investors await US PPI inflation data

• NZD/USD gains momentum to near 0.5600 in Tuesday's Asian session, adding 0.60% on the day. 
• The stronger-than-expected United States employment report might boost the USD and cap the pair's downside. 
• China exports accelerated in December, beating the estimation. 

The NZD/USD pair recovers from a two-year low to around 0.5600 during the early Asian session on Tuesday. The modest decline of the Greenback and encouraging Chinese economic data provide some support to the pair. Traders await the US Producer Price Index (PPI) for December, which is due later on Tuesday. 

The US Dollar Index (DXY), which tracks the USD currency against a basket of its peers, currently trades near 109.60 after retreating from 110.17, its highest level since November 2022. Meanwhile, the 10-year US Treasury bond yield reached 4.8%, its highest level since late 2023.

The strong US December Nonfarm Payrolls (NFP) report on Friday led traders to slash expectations for interest rate cuts by the US Federal Reserve (Fed) this year, which might lift the US Dollar (USD). Swaps markets now expect just one quarter-point cut in 2025, with some analysts anticipating the easing cycle has finished.

On the Kiwi front, China's exports grew at a faster pace than expected in December, rising 10.7% from a year earlier, the official customs data showed Monday. Additionally, China's Trade Surplus grew to $104.84 billion in December, up from $97.44 billion in November. The recovery in the Chinese economy might underpin the New Zealand Dollar (NZD), as China is a major trading partner for New Zealand. 

However, U.S. President-elect Donald Trump is set to return to the White House on January 20. This could spark fears of a renewed trade war between the US and China, weighing on the China-proxy Kiwi.