While most of the observers have been focusing on the American economy for the last months, other markets felt Donald Trump’s actions. The specter of tariffs looms across multiple worldwide economies.
End of Russian-American friendship?
Surprisingly for Donald Trump’s administration, Vladimir Putin doesn’t seem to care about agreements made with the USA about a ceasefire in the Ukraine. Russia didn’t stop (or at least limited) its aggression, and the POTUS is, according to reports, “pissed off” on Putin.
What could it mean for the markets?
The reports suggest that the United States can introduce even more tariffs. This time, the price of imported Russian oil will probably increase.
This unpredictable twist in the relationship between Trump and Putin has alerted the commodities traders. Even with limited trading relations with the European Union, Russia is still a major exporter of fossil fuels, including oil. The potential rise of tariffs can impact oil and other commodities prices.
Tense situation Down Under
American tariffs impact worldwide economies, even those not put on the front pages. The Australian dollar faces a tough challenge due to the substantial importance of the export of natural resources to the national economy. On Wednesday, Donald Trump will announce another list of tariffs that may impact the AUDUSD and NZDUSD currency pairs.
It can also impact the biggest Australian equities in the market. Traders carefully watch financial and mining conglomerates, including BHP – the biggest mining company in the world. SimpleFX has recently extended its offer with multiple assets, including Australian equities. Check out the full list here.
However, Australia and New Zealand are not as dependent on the USA as other countries. Essential information for these economies comes from the Far East. China experienced slight growth in several economic indicators in March. These data can make Australian and New Zealand currencies stronger, limiting losses against the USD.
Safe-haven harbor
Almost every trader knows to look for a balance. The market reacts in a similar way. While multiple assets, such as oil, the Australian Dollar, and the New Zealand Dollar, may fluctuate, traders look at gold for stability.
In November, after the U.S. elections’ results, the XAUUSD price fell from approximately $2,800 to below the $2,600 level. Market sentiment was extremely bullish back then, so traders more willingly invested in volatile assets, such as crypto or major American equities. However, the turbulent situation in the United States has turned the situation completely. Bearish signs on Bitcoin and massive falls in the market lured investors back to stability.
That results in massive gold growth. Only in 2025, gold recorded a massive growth from above $2,600 to $3,100, regularly breaking its ATH level.
Decades of stability in the gold market make XAUUSD a reliable, safe-haven asset, as seen in recent months.
