NZD/USD rises to near 0.5750 as China's Ding pledges support for private sector growth

• NZD/USD strengthens as China's Vice Premier Ding Xuexiang announces plans for more proactive macroeconomic policies this year.
• President Trump's 25% auto tariff sparks fears of a broader trade war, potentially impacting US economic growth.
• The US Dollar struggles as Treasury yields decline, with the 2-year and 10-year yields at 4.01% and 4.37%, respectively.

NZD/USD is trading around 0.5740 during European hours on Thursday, recovering from losses in the previous session. The pair is gaining as the New Zealand Dollar (NZD) strengthens, possibly driven by the comments from China's Vice Premier Ding Xuexiang, who stated that China will implement more proactive macroeconomic policies this year. Given the close trade ties between China and New Zealand, any economic shifts in China can significantly impact New Zealand's markets.

China's Vice Premier Ding also emphasized China's commitment to fostering private sector growth, addressing concerns of foreign businesses, and encouraging foreign investment. These statements have provided a boost to risk sentiment, benefiting the NZD.

Additionally, the US Dollar (USD) is retreating after US President Donald Trump announced a 25% tariff on imported cars and light trucks, set to take effect on April 2. This move, alongside other planned reciprocal tariffs, has raised concerns over a broader trade war that could weigh on economic growth.

The US Dollar Index (DXY), which measures the US Dollar (USD) against six major currencies, is pulling back from recent gains and is trading around 104.40. The Greenback faces additional pressure as US Treasury yields decline, with the 2-year and 10-year yields at 4.01% and 4.37%, respectively.

Market participants are now awaiting key US economic data scheduled for release later today, including weekly Initial Jobless Claims and the final Q4 Gross Domestic Product (GDP) Annualized report. Additionally, Friday's Personal Consumption Expenditures (PCE) report--the Federal Reserve's preferred inflation measure--will offer further insights into the central bank's policy outlook.