NZD falls in February as Trump teases on tariffs
Jason Wong -
• February was peppered with various threats by Trump to raise import tariffs, with the only ones enacted being those for China
• Heightened policy uncertainty overhung the market, while weaker US data and lower US rates were a drag on the USD
• Still, the yuan weakened, and the NZD underperformed; NZD/USD fell 0.7% and the NZD was weaker on the major crosses
January jitters as Trump threatens tariffs
Jason Wong -
• Currency markets were jumpy in January, reacting to Trump’s soundbites on tariffs, but without any material reaction overall.
• NZD/USD recovered from a nearly 12% plunge in Q4 to show some signs of stability through January and a modest net gain.
• The NZD was up on most crosses; net moves in global rates were modest; global equity markets reached a fresh record high.