An article I found interesting, may be someone will enjoy it too (may be some SS members invest in Kiwi?) A pic comes first Trump Trade Threat Catches Kiwi in Crossfire as Low Looms (1) By Michael G. Wilson (Bloomberg) -- New Zealand’s dollar is becoming a victim of U.S. President Donald Trump’s war on trade. The kiwi slid to an 11-month low last week as Trump ratcheted up global trade tensions by imposing tariffs on Canadian lumber, tweeting in defense of Wisconsin dairy farmers, and talking about renegotiating a deal with South Korea. That’s raised the specter that he may refocus on China, which is New Zealand’s largest trading partner, said Nathan Penny, a rural economist at ASB Bank Ltd. in Auckland. “In the event of China and U.S. going head to head, as an open economy, New Zealand would be caught in the crossfire,” said Penny at ASB Bank, a subsidiary of Commonwealth Bank of Australia. The kiwi has been the worst-performing major currency in the past three months, sliding about 5 percent against the greenback. It closed on Friday below a monthly trendline connecting the lows of September 2015 and January 2016, paving the way for a test of the 66.76 U.S. cent-level reached in May last year. Momentum indicators, including a relative strength index at 32 and slow stochastics at 26, though bearish are by no means stretched, signaling the potential for further losses before any relief rally. The kiwi slid to 68.48 cents on Thursday, the weakest level since June 3. It traded at 68.75 cents to the dollar on Monday. New Zealand’s currency underperformed the Canadian dollar last week even as the loonie slid when Trump slapped tariffs of up to 24 percent on softwood lumber from Canada. The White House last week reaffirmed its commitment to the North American Free Trade Agreement, alleviating some of the pressure on trade-dependent currencies such as the kiwi. At the same time, Trump has signed a memorandum encouraging the Commerce Department to investigate claims Chinese steelmakers colluded to fix prices, threatening higher tensions with China. To contact the reporter on this story: Michael G. Wilson in Sydney at [email protected] To contact the editors responsible for this story: Tan Hwee Ann at [email protected] Nicholas Reynolds -----------------------------====================------------------------------ Copyright (c) 2017, Bloomberg, L. P.
U.S. Announces Investigation of WTO, Existing Trade-Deal Abuses By Andrew Mayeda and Justin Sink (Bloomberg) -- President Donald Trump is expected to sign an executive order on Saturday directing a 180-day study of violations to existing trade deals and of World Trade Organization rules, Commerce Secretary Wilbur Ross says in media briefing. * WTO to be included in study, which will include proposed solutions, as the biggest trade agreement of all because it connects so many countries * “There has never been a systematic evaluation of what has been the impact of the WTO agreements on the country as an integrated whole” * Investigation will focus on products for situations of overcapacity, on a country-by-country basis for behavioral issues, and in some cases both * “Nafta will certainly be part of this study, a big part of it” * Withdrawal from the trade pact would be the most “extreme form” of negotiation; such a move would be “last resort” if renegotiation fails: Ross * NOTE: U.S. has been WTO member since 1995 and it has trade agreements with 20 countries, including South Korea, Canada, Mexico and Australia
