Activity Levels for Australian and New Zealand Dollars Hit Extremes

Trading Discussion Currencies
1

  1. Trading in the Australian and New Zealand these past three trading days relative to the whole month its lows comparable to Jan 1.

  2. Though distorted in its relationship to risk trends and carry trade, the Aussie Dollar still has a catalyst in China-relations

  3. Similarly knocked off its carry trade perch, the New Zealand Dollar may find its guidelines from local data: 2Q NZ GDP.

2

Dollar sentiment shift as it slips on tariff escalation

After more than a week of anticipation, Donald Trump has finally pulled the trigger on the next phase of trade tariffs on Chinese imports. A 10% tariff on $200bn worth of imports from China will come into force on Monday, whilst this 10% will rise to 25% on 1st January. Trump also talked about moving to “phase 3” (putting tariffs on the remaining $267bn of Chinese imports) is China were to retaliate. Sentiment on equity markets has been hit, but reaction elsewhere, in forex and bond markets is intriguing, especially for the dollar