NZD/USD gathers strength to near 0.5750 on softer US Dollar

NZD/USD strengthens to around 0.5745 in Monday’s early Asian session. 

Concerns over the US economic slowdown weigh on the US dollar and create a tailwind for the pair. 

The Chinese government announced stimulus plans to boost consumption, supporting the China-proxy Kiwi. 

The NZD/USD pair gathers strength to around 0.5745 during the early Asian session on Monday, bolstered by the weaker US Dollar (USD) and Chinese stimulus. Traders await the preliminary reading of the US S&P Global Manufacturing Purchasing Managers Index (PMI) for March, which is due later on Monday. 

The Greenback remains under selling pressure amid worries over the hit to US economic growth from the US President Donald Trump administration's trade policies. US President Donald Trump has declared April 2 to be "Liberation Day" for the US, when he will implement so-called reciprocal tariffs that seek to equalize US tariffs with those charged by trading partners, as well as tariffs on sectors such as automobiles, pharmaceuticals, and semiconductors, which he has repeatedly stated would be enacted on that day.

On the Kiwi front, 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. This, in turn, might boost the China-proxy New Zealand Dollar (NZD),a as China is a major trading partner to Australia.