Weekly Recap: Aussie Gains, Kiwi Struggles & Global Trade Heats Up
Another week, another round of market moves and this one was a bit of a mixed bag across Australasia. While Australian shares managed to finish in the green, New Zealand’s market stumbled, and global headlines were dominated by rising trade tensions and new tariffs.
Australia: ASX Edges Higher
The ASX 200 closed the week up 0.6%, thanks to solid performances from banks and energy companies.
Investors were relieved when the RBA kept interest rates on hold (again), sticking to a cautious, wait-and-see approach.
Banks had a good week, higher rates for longer could mean better profits.
Energy stocks also got a boost as oil prices climbed toward US$85 a barrel on the back of renewed geopolitical tensions.
On the flip side, consumer stocks didn’t fare as well. Weak retail sales numbers suggest shoppers are tightening their belts.
The Aussie dollar held steady around US$0.662, not much excitement there.
New Zealand: NZX Slides
Things weren’t as upbeat across the ditch. The NZX 50 slipped 1.2% this week, as economic growth concerns continued to weigh on the market.
Early GDP figures hinted at a soft Q1, raising fresh fears of a slowdown.
Big names in utilities and infrastructure took a hit as investors moved to safer ground.
Fonterra also trimmed its milk price forecast, putting pressure on the agri sector.
The NZ dollar dipped to around US$0.610, with softer data and a stronger USD driving the move.
Global Spotlight: Tariffs Back in the Headlines
Trade tensions are back in the spotlight after the US rolled out a 10% tariff on all imports, with even steeper penalties for countries with large trade surpluses.
This has global markets on edge, fears of retaliatory tariffs and supply chain disruptions are front of mind.
The IMF downgraded its 2025 global growth forecast to 2.8%, citing these new tariffs as a key risk.
APEC also sounded the alarm, expecting regional export growth to slow sharply to just 0.4% (down from 5.7% in 2024).
On the bright side, New Zealand scored a win by locking in a new trade deal with Costa Rica, Iceland, and Switzerland, which will remove tariffs on dozens of products, including wood and wool. A small but meaningful boost for exporters.
What’s Next?
Looking ahead, all eyes will be on inflation data out of Australia and New Zealand, and any fresh signals from the US Fed and Chinese economy. Markets will also be watching to see how the tariff story evolves, it's clear global trade is entering a bumpier patch.
This Week in Numbers:
ASX 200: +0.6%
NZX 50: -1.2%
AUD/USD: even 0.662
NZD/USD: even 0.610