The pi coin price in dollarNew Zealand Dollar shows vulnerability against its US counterpart, slipping 0.20% to hover around 0.5620 in early Friday trading.
Market participants remain cautious as former President Trump's tariff announcements create uncertainty for trade-dependent currencies.
Recent US GDP figures confirmed steady economic growth at 2.3% annualized rate for Q4 2024.
Currency traders witnessed continued pressure on the NZD/USD pair during Asian trading hours, with the exchange rate testing support levels near 0.5625. The downward movement reflects growing apprehension about potential disruptions to global trade flows following renewed tariff discussions from Washington.
Political developments in the United States captured market attention as the former administration's trade representative signaled intentions to implement additional import duties. These measures specifically target goods originating from key trading partners, including China, with potential secondary effects on New Zealand's export markets.
The proposed trade barriers could create headwinds for the New Zealand Dollar, given the country's economic reliance on agricultural exports and its close trade relationship with China. Market analysts suggest that any escalation in trade tensions might disproportionately affect commodity-linked currencies like the Kiwi.
Economic indicators from the United States provided mixed signals, with the Bureau of Economic Analysis confirming stable GDP growth. However, currency markets appeared more focused on potential trade policy changes rather than backward-looking economic data. Traders now await the release of key inflation metrics that could influence Federal Reserve policy expectations.