New Zealand and Australian Currencies Plunge Amid Escalating U.S.-China Trade War
The New Zealand dollar nears its Covid-era low, and the Australian dollar hits a five-year low as markets brace for further rate cuts and global recession fears grow.
- The New Zealand dollar is trading at $0.5577, with analysts predicting a potential drop below its Covid-era low of 54.70 cents by the end of 2025.
- The Australian dollar has fallen to a five-year low of $0.5933, driven by fears of a prolonged global trade war and economic recession.
- The Reserve Bank of New Zealand is expected to cut its benchmark interest rate by 25 basis points on April 9, 2025, following 175 basis points of cuts since August 2024.
- Asian stock markets have seen sharp declines, with Chinese mainland stocks down 4% and the Hang Seng index dropping 8.5% as trade tensions escalate.
- Market analysts highlight the decoupling of traditional economic indicators, such as dairy prices, from the performance of the New Zealand dollar, reflecting broader economic uncertainties.
The Guardian 
SBS News 
Australian Broadcasting Corporation 
