NZD/USD extends the decline below 0.5700 on downbeat Chinese PMI data, Fed's hawkish remarks

• NZD/USD extends its downside to near 0.5695 in Tuesday's early Asian session. 
• Chinese RatingDog Manufacturing PMI eased to 50.6 in October vs. 50.9 expected.  
• Fed's Powell said further reductions were "not a foregone conclusion.

The NZD/USD pair attracts some sellers to around 0.5695 during the early Asian session on Tuesday. The New Zealand Dollar (NZD)  weakens against the US Dollar (USD) as the latest data showed the Chinese manufacturing sector weakening last month. Federal Reserve (Fed) Governor Michelle Bowman is scheduled to speak later on Tuesday.

Data released by RatingDog on Monday showed that China's RatingDog Manufacturing Purchasing Managers' Index (PMI) declined to 50.6 in October, versus 51.2 prior. This figure came in worse than the estimation of 50.9. The weaker-than-expected Chinese PMI data could drag the China-proxy Kiwi lower, as China is a major trading partner for New Zealand. 

The Federal Reserve (Fed) delivered its second interest rate cut of the year, lowering the benchmark rate to between 3.75% and 4.00%. Chair Jerome Powell hinted during the press conference that a further reduction in the policy rate at the December meeting is not a foregone conclusion, and traders now see only about a 70% probability of a cut in December, down from 93% a week ago. The hawkish tone of the Fed could underpin the Greenback and act as a headwind for the pair. 

The US federal shutdown has entered its sixth week and is poised to become the longest in US history, with Republican and Democratic lawmakers in Congress no closer to ending their budget standoff. Fears of a prolonged US government shutdown might drag the USD lower and help limit the pair's losses.