NZD/USD extends downside below 0.5750 as US tariffs loom

• NZD/USD weakens to near 0.5725 in Tuesday's early Asian session. 
• Trump's tariff policies and expectations of further RBNZ rate cuts continue to undermine the Kiwi. 
• China's stimulus measures might cap the downside for the pair. 

The NZD/USD pair extends the decline to around 0.5725 during the early Asian session on Tuesday. The New Zealand Dollar (NZD) softens to a one-week low amid concerns over the looming April 2 deadline for US reciprocal tariffs.

Trump said late Monday that he will announce tariffs on automobile imports in the coming days and indicated that some countries will receive breaks from reciprocal tariffs on April 2. Trump signaled there could be "flexibility" in the tariff plans and some trading partners would receive possible exemptions or reductions. However, the confusion about Trump's plans for the tariff announcement scheduled for April 2 could weigh on the Kiwi against the US Dollar (USD). 

Economists expect the Reserve Bank of New Zealand (RBNZ) to deliver further rate cuts to the Official Cash Rate (OCR) at each of the next meetings despite the GDP report last week surprising to the upside. "So far, the inflation outlook remains comfortable for the RBNZ. Two 25bp cuts over April and May remain highly certain," said ASB chief economist Nick Tuffley.

Meanwhile, a fresh Chinese stimulus measure might help limit the NZD's losses, given China's key role as New Zealand's major trading partner. The ruling Chinese Communist Party's (CCP) central committee and state council announced ambitious plans to "vigorously boost consumption" by putting up pay and reducing financial burdens in its latest attempt to increase consumer confidence and lift its struggling economy.