NZD/USD holds steady around 0.5675-80 area, above multi-week low ahead of Trump's tariffs

• NZD/USD lacks any firm intraday direction on Tuesday amid mixed fundamental cues.
• An improvement in the global risk sentiment underpins the Kiiwi amid a softer USD.
• The upside remains capped as traders await Trump's reciprocal tariffs announcement.

The NZD/USD pair struggles to capitalize on the previous day's modest bounce from the 0.5650-0.5645 region or a nearly four-week low and oscillates in a narrow band during the Asian session on Tuesday. Spot prices currently trade around the 0.5675-0.5680 area, nearly unchanged for the day amid mixed fundamental cues.

Asian stocks tracked overnight gains on Wall Street and recovered slightly amid some repositioning trade ahead of US President Donald Trump's reciprocal tariffs announcement. Furthermore, the growing acceptance that a tariff-driven slowdown in US economic growth might force the Federal Reserve (Fed) to resume its rate-cutting cycle soon keeps the US Dollar (USD) bulls on the defensive. This, in turn, acts as a tailwind for the NZD/USD pair. 

Adding to this, the better-than-expected China's Caixin Manufacturing Purchasing Managers' Index (PMI), which rose to 51.2 in March from 50.8 in the previous month, further underpins antipodean currencies, including the New Zealand Dollar (NZD). That said, persistent worries about the potential economic fallout from Trump's aggressive trade policies hold back traders from placing fresh directional bets and cap the upside for the NZD/USD pair.

Traders now look forward to important US macro releases, scheduled at the start of a new month, starting with the JOLTS Jobs Openings data and ISM Manufacturing PMI later today, for some meaningful impetus. The focus, however, will remain glued to Trump's impending reciprocal tariffs, which will play a key role in influencing the broader risk sentiment. This, in turn, will drive the USD demand and produce short-term opportunities around the NZD/USD pair.