NZD/USD rises to near 0.5750 as US Dollar softens amid improved risk sentiment

• NZD/USD extends its winning streak due to improved risk sentiment.
• White House announced that automakers will be temporarily exempt from newly imposed tariffs on Mexico and Canada for one month.
• China's spokesperson stated that China is prepared to fight "any type" of war in response to escalating trade tariffs.

NZD/USD continues its upward momentum for the fourth consecutive session, trading around 0.5730 during Asian hours on Thursday. The pair benefits from a subdued US Dollar (USD) amid improved risk sentiment, driven by another shift in US President Donald Trump's tariff strategy.

On Wednesday, the White House announced that Trump is temporarily exempting automakers from newly imposed tariffs on Mexico and Canada for one month. Additionally, reports from Bloomberg suggest he is also considering excluding certain agricultural products from tariffs on these countries.

The US Dollar Index (DXY), which measures the USD against six major currencies, is hovering around 104.30 at the time of writing. The Greenback remains under pressure following weaker-than-expected US private payroll data, raising concerns about slowing economic momentum in the United States (US).

The ADP Employment Change report for February showed just 77K new jobs, significantly below the 140K forecast and well under March's 186K reading. Market participants are now focused on Friday's US Nonfarm Payrolls (NFP) report, which is expected to indicate a moderate recovery in job growth. Forecasts suggest net job additions will rise to 160K in February, up from January's 143K.

However, further upside for NZD/USD could be limited by lingering geopolitical concerns. A Chinese foreign ministry spokesperson stated late Wednesday that China is prepared to fight "any type" of war in response to Trump's escalating trade tariffs, according to the BBC. Given China's status as New Zealand's largest trading partner, such tensions could weigh on the New Zealand Dollar (NZD).

Traders are also closely monitoring domestic economic developments following the unexpected resignation of Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr, who stepped down with three years remaining in his term without citing a reason. Orr's departure leaves the central bank without a permanent leader amid the country's worst economic downturn in three decades.