The Australian and New Zealand (NZ) dollars are facing strong headwinds. A series of U.S. tariff policies under Donald Trump have fueled uncertainty, making investors wary. As a result, the Aussie and Kiwi have lost ground after reaching their 2025 highs.
The Australian dollar is currently struggling at $0.6282. Overnight, it dipped 0.4% to as low as $0.6263. It had previously reached a high of $0.6409 in 2025 but has since retreated. Resistance now stands at $0.6364.
One key reason for the Aussie’s decline is increasing risk aversion. The prospect of a U.S. recession, fueled by trade tensions, has weakened investor confidence. Many traders are now hesitant to make bullish bets on the currency.
The New Zealand dollar is also under pressure, trading around $0.5696 after slipping 0.2% overnight. It is now well below its 2025 peak of $0.5772. A key challenge for the Kiwi is the convergence of its 7-day, 14-day, and 21-day moving averages. This technical level has attracted selling interest, making it difficult for the currency to recover.
Australian and NZ dollars are often seen as indicators of global risk appetite. While fears of a U.S. recession have hurt their appeal, a weaker U.S. dollar has provided some relief. Lower U.S. bond yields have pressured the greenback, offering temporary support for the Antipodean currencies.
However, analysts warn that this is not the right time to be overly optimistic. HSBC’s Global FX Strategist Lenny Jin notes that while the U.S. dollar has weakened, the Australian and NZ dollars are not the main beneficiaries of the shift.
In Australia, consumer confidence has reached a three-year high after the Reserve Bank of Australia (RBA) cut interest rates. However, businesses remain cautious due to weak demand and rising costs.
Traders see little chance of another RBA rate cut in April, but a move in May is now 80% priced in. By the end of the year, interest rates are expected to reach 3.5%.
Meanwhile, New Zealand is facing a different challenge. Aggressive rate hikes in the past have pushed the economy into recession. Investors now expect three more rate cuts this year, bringing the terminal rate down to 3%.
Stay ahead of the latest forex trends and market analysis about the Australian and NZ dollars—visit our website now: Fixio Markets.
Australian and NZ dollars struggle as Trump’s tariff policies increase market uncertainty. Risk aversion rises, impacting forex trends.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)