Market Overview
• Reserve Bank governor Adrian Orr has resigned. He will finish up on 31 March 2025. The acting governor Christian Hawkesby will jump in as acting governor effective immediately. A new governor will be appointed on 1 April who will take up the post for 6 months.
• Euro and GBP dominate moves this week with impressive runs higher outperforming other major crosses.
• Subdued US Dollar (USD) has seen the kiwi rise into the 0.57’s the fifth consecutive trading session driven by improved risk sentiment towards Trump tariff strategy.
• Australian Building Permits up 21% in January vs 12% expected y/y.
• Trump is considering an exemption on some agricultural products from tariffs in Canada and Mexico.
• Bank of England’s Bailey is expecting “second round” rising inflation due to a weakening economy.
• The USD extended losses into Friday amid weak jobs data.
• The Euro (EUR) has been the best performing currency in March so far while the US Dollar (USD) has been the worst performing currency across the main board.