NZD/USD faces some selling pressure to around 0.5620 in Friday’s early Asian session, down 0.20% on the day.
Trump vowed March 4 tariffs for Mexico, Canada and an extra 10% for China over fentanyl.
The US economy grew at a 2.3% annualized pace in Q4, matching estimates.
The NZD/USD pair extends its decline to near 0.5625 during the early Asian session on Friday. The concerns about US President Donald Trump’s tariffs exert some selling pressure on the New Zealand Dollar (NZD). Later on Friday, the US Personal Consumption Expenditures (PCE) Price Index data for January will be in the spotlight.
Trump on Thursday said his proposed 25% tariffs on Mexican and Canadian goods will take effect on March 4, along with an additional 10% duty on Chinese imports because deadly drugs are still pouring into the US from those countries.
Trump added the new tariffs on Chinese goods will be added to the 10% tariffs he imposed on February 4 in response to the fentanyl opioid epidemic, resulting in a cumulative 20% tariff. Any signs of renewed US tariff threats could drag the China-proxy Kiwi lower as China is a major trading partner to New Zealand.
The US Bureau of Economic Analysis (BEA) revealed on Thursday that the US Gross Domestic Product (GDP) expanded at an annual rate of 2.3% in the fourth quarter. This figure matched the initial estimate and came in line with the market expectation.
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