NZD/USD weakens below 0.5650 as China's CPI falls in March 

• NZD/USD edges lower to around 0.5630 in Thursday's early Asian session, losing 0.22% on the day. 
• China's CPI inflation came in at -0.1% YoY in March vs. 0.1% expected. 
• China's tariff rate will jump to 125%, effective immediately, the White House said. 

The NZD/USD pair softens to near 0.5630 during the early Asian section on Thursday. The New Zealand Dollar (NZD) remains weak against the Greenback after the release of China's Consumer Price Index (CPI) report. Later on Thursday, the attention will shift to the US March CPI inflation data. 

Data released by the National Bureau of Statistics of China showed that the country's CPI declined 0.1% YoY in March, compared to a fall of 0.7% in February. Markets estimated a 0.1% growth in the reported period. On a monthly basis, the CPI decreased 0.4% versus -0.2% prior, worse than the expected -0.2% figure. 

Meanwhile, the Producer Price Index (PPI) fell by 2.5% YoY in March, compared to the previous reading of a 2.2% decline. This reading was weaker than the estimation of -2.3%. The Kiwi posts modest losses in an immediate reaction to the Chinese economic data. 

The Reserve Bank of New Zealand (RBNZ) cut its benchmark interest rate by 25 basis points (bps) at its April meeting on Wednesday, as widely expected. Analysts anticipate the RBNZ to deliver a deeper 50 bps cut, with markets factoring in the possibility of up to 100 bps in further easing by 2025.

US President Donald Trump on Wednesday was implementing a 90-day pause on reciprocal tariffs above a 10% baseline on imported goods from trading partners other than China. Trump raised the tariffs imposed on imports from China to 125% "effective immediately" due to the "lack of respect that China has shown to the world's markets." This, in turn, exerts some selling pressure on the China-proxy Kiwi, as China is a major trading partner of New Zealand.