So far this week, neither the Australian Dollar (AUD) nor the New Zealand Dollar (NZD) have been able to benefit from the general weakness of the US Dollar (USD), and both currencies have weakened slightly over the course of the week, Commerzbank FX strategist Volkmar Baur notes.
AUD to suffer more than on the NZD
“It seems that both are being weighed down more by weak data from China than the USDo is by recession fears in the US itself. A look at the export data shows why. About 35% of all Australian exports over the past 12 months went to China, while the figure for New Zealand was still around 25%. A prolonged slowdown in China is therefore likely to affect both countries – although over time it should become clear that Australia will suffer more than New Zealand.”
“This is because not only is China's share of total exports higher in Australia than in New Zealand. The composition also suggests that Australia will be hit harder. Because while New Zealand exports mainly food, iron ore alone accounts for 26% of all Australian exports - of which around 85% are shipped to China. Together with coal, of which about 11% also goes to China, these two commodities account for about 42% of Australian exports.”
“With Chinese stockpiles of both iron ore and coal recently at very high levels, Australian exports could remain under pressure in the coming months. Especially if the property crisis in China continues. This is likely to weigh on the AUD more than on the NZD.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold jumps to new record-high above $3,220 as China ramps up tariffs on US goods
Gold extends its relentless rally and trades at a new all-time high above $3,220 in the European session on Friday. The precious metal benefits from safe-haven flows following China's decision to raise additional tariffs on US imports to 125% from 84%.
EUR/USD climbs to fresh multi-year high above 1.1400 on intense USD weakness
EUR/USD continues to push higher and trades at its strongest level since February 2022 above 1.1400 in the European session on Friday. The US Dollar (USD) stays under heavy pressure after China raised tariffs on US imports in retaliation, fuelling the pair's upsurge.
GBP/USD extends the advance to near 1.3100 as USD selloff picks up steam
GBP/USD preserves its bullish momentum and advances to near 1.3100 in the European session. The persistent USD weakness remains the main market theme as fears over the deepening China-US trade conflict triggering a recession in the US continue to grow.
Bitcoin, Ethereum and Ripple show weakness while XRP stabilizes
Bitcoin and Ethereum prices are hovering around $80,000 and $1,500 on Friday after facing rejection from their respective key levels, indicating signs of weakness. Meanwhile, Ripple broke and found support around its critical level; maintenance suggests a recovery on the cards.
Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.