• NZD/USD receives downward pressure as RBNZ is widely expected to deliver another 50-basis-point rate cut in November.
• The NZD could gain support from favorable results stemming from China's initiatives, its largest trading partner.
• The US Dollar appreciates as recent positive economic data reinforces expectations for nominal rate cuts by the Fed.

The NZD/USD pair steadies near 0.5980 during the Asian session on Tuesday after two days of losses. However, downside risks for the New Zealand Dollar (NZD) remain as the Reserve Bank of New Zealand (RBNZ) is expected to deliver another 50-basis-point rate cut in its final policy meeting of the year in November, with markets even considering the possibility of a 75-basis-point cut.

On Monday, China's Vice Minister of Finance, Liao Min, announced plans to enhance countercyclical adjustments in macroeconomic policies to foster economic recovery in the fourth quarter. Positive outcomes from these initiatives could bolster the NZD, considering China's importance as a key trading partner for New Zealand.

UOB Group’s FX analysts, Quek Ser Leang and Lee Sue Ann observed that while there hasn't been a significant increase in momentum over the long term, the weakness in the New Zealand dollar (NZD) has yet to stabilize. If the NZD does not breach the 0.6010 level, it could fall below 0.5970 before any stabilization occurs, with the next key level to monitor being 0.5950.