NZD/USD remains below 0.5750 ahead of China's trade balance

• NZD/USD holds losses due to market caution ahead of the release of China's trade data on Friday.
• Trump exempted Mexican and Canadian goods under the USMCA from his proposed 25% tariffs.
• US NFP is expected to increase to 160K in February, up from January's softer reading of 143K.

NZD/USD halts its four-day losing streak, trading around 0.5730 during the Asian hours on Friday. The pair encounters challenges as market caution prevails ahead of the release of China's trade data and the US Nonfarm Payrolls (NFP) report later today.

Meanwhile, traders remain focused on global trade developments, as Canada postpones its planned second round of retaliatory tariffs on US products until April 2. This decision follows US President Donald Trump's exemption of Mexican and Canadian goods under the USMCA from his proposed 25% tariffs.

US Initial Jobless Claims for the week ending March 1 dropped to 221K, compared to 242K in the previous week, according to the US Department of Labor (DOL) on Thursday. This figure came in below the market consensus of 235K. US NFP is expected to show a modest rebound in job growth. Projections suggest net job additions will rise to 160K in February, up from January's subdued 143K.

According to MUFG Bank analysts, expectations are increasing that the Federal Reserve (Fed) may prioritize addressing slowing economic growth over elevated inflation in response to US tariffs, which could weigh on the US Dollar. A recent decline in consumer confidence indicates growing household concerns over the inflationary impact of tariffs and economic risks stemming from rising policy uncertainty in the United States (US).

The NZD/USD pair strengthened after Chinese officials pledged additional stimulus beyond the fiscal spending measures outlined in the government's annual work report released on Wednesday. Given China's position as New Zealand's largest trading partner, this development provided support for the New Zealand Dollar (NZD).

China's Finance Minister, Lan Foan, stated that the government remains open to further stimulus if the economy struggles to meet its 5% Gross Domestic Product (GDP) growth target. Additionally, People's Bank of China Governor Pan Gongsheng reaffirmed a dovish stance on interest rates, stating that interest rate and Reserve Requirement Ratio (RRR) cuts will be implemented "at an appropriate time."