Home Daily Commentaries NZD buoyed as President Trump offers tariff relief

NZD buoyed as President Trump offers tariff relief

Matt Richardson
Written by
Matt Richardson

Matt Richardson

OFXpert

Matt provides expertise in currency risk management to his clients, drawing from his 14 years of experience in foreign exchange.

| Thursday 10 April, 2025

Daily Currency Update

Elevated volatility continued through trade on Wednesday. It was another wild 24 hours for financial markets as President Trump announced a 90-day reprieve on the introduction of the so-called “Liberation Day” tariffs. Just hours after the new tariffs took effect, the President declared a moratorium on all but the 10% baseline tariff, China excluded. Trump retaliated to China’s decision to add another 50% tariff to its earlier 34% tariff, taking the total tariff on US imports since Liberation Day to 84%. The NZD tested a break below US$0.5550 following China’s tariff increase before surging on improved risk sentiment. Equities and risk assets lurched higher and the NZD pitched back above US$0.5650, marking session highs just south of US$0.5665, outpacing other majors. The NZD traded back above 83.50 against the yen, pushed through 0.5150 against the euro, and edged above 0.44 against the pound. The NZD did relinquish ground to its antipodean counterpart, sliding back below 0.92 against the AUD.

Our attentions remain affixed to tariff headlines as the market rebuilds after the chaos of this last week. Chinese inflation data, US inflation numbers and jobless claims round out the macro docket.

Key Movers

Turmoil across financial markets continued through trade on Wednesday as tariff headlines again dominated direction. Risk sentiment faltered as China announced a further 50% tariff on US imports, bringing the post-Liberation Day tariff to 84%. President Trump immediately retaliated, announcing a further 50% tariff on China imports, lifting the total tariff to 125%. With risk aversion elevated, safe havens lead gains until President Trump announced a 90-day moratorium on the introduction of new tariffs. Just hours after the new tariffs were to take effect, Trump confirmed he would afford a 90-day reprieve on all taxes outside the baseline 10% tariff. Safe haven assets faded, with the yen and Swiss franc bearing the brunt of the correction, down 1%. EUR and GBP were little changed, and commodity currencies climbed. The USD DXY index was flat.

Our attentions remain affixed to tariff headlines. Negotiations and tariff plans will continue to dominate direction through the months ahead.

Expected Ranges

  • NZD/USD: 0.5500 - 0.5800 ▲
  • NZD/EUR: 0.5000 - 0.5250 ▲
  • GBP/NZD: 2.2000 - 2.3000 ▼
  • NZD/AUD: 0.9050 - 0.9300 ▲
  • NZD/CAD: 0.7830 - 0.8050 ▲

Written by

Matt Richardson

OFXpert

As a Senior Corporate Client Manager, Matt provides expertise in currency risk management to his clients, drawing from his 14 years of experience in foreign exchange. Matt has clients who he has been working with for over a decade, a testament to his knowledge and dedication in the field. Matt is also a regular contributor on Ausbiz, offering clear and precise updates on currency market trends, showcasing his ability to interpret complex financial data into actionable insights.