NZD/USD remains subdued below 0.5750 amid a downbeat market sentiment

• NZD/USD declines amid sour market sentiment after Trump announces plans to impose tariffs on Canada and Mexico.
• Chicago Fed President Austan Goolsbee stated that the US central bank requires more clarity before contemplating interest rate cuts. 
• The PBOC injected CNY300 billion through the one-year Medium-term Lending Facility (MLF), keeping the rate steady at 2%. 

The NZD/USD pair continues its losing streak for the third consecutive day, trading around 0.5730 during Asian hours on Tuesday. This depreciation comes amid a downbeat market sentiment following US President Donald Trump's announcement to proceed with tariffs on Canada and Mexico.

Late Monday, President Trump stated that sweeping US tariffs on imports from Canada and Mexico "will go forward" when the month-long delay on their implementation ends next week. He claimed that the United States (US) has "been taken advantage of" by foreign nations and reiterated his plan to impose so-called reciprocal tariffs.

The US Dollar (USD) has faced challenges due to disappointing US economic data, including Jobless Claims and the S&P Global Purchasing Managers' Index (PMI) released last week. Adding to the uncertainty, Federal Reserve Bank of Chicago President Austan Goolsbee remarked on Monday that the US central bank needs greater clarity before considering interest rate cuts.

In China, the People's Bank of China (PBOC) injected CNY300 billion on Tuesday via the one-year Medium-term Lending Facility (MLF), maintaining the rate at 2%. Additionally, the PBOC injected CNY318.5 billion through seven-day reverse repos at 1.50%, consistent with the prior rate. Given the close trade relationship between China and New Zealand, any shifts in the Chinese economy could impact the New Zealand Dollar (NZD).

However, the downside of the NZD/USD pair could be limited as the New Zealand Dollar may have found support from China's release of its annual policy statement for 2025 on Sunday. The statement outlines strategies to advance rural reforms and promote comprehensive rural revitalization. Furthermore, China's state-backed developers are increasing land purchases at premium prices, spurred by the government's relaxation of home price restrictions to revive the struggling property market.