In December, New Zealand’s exports hit $7.65 billion, up from $6.99 billion in November. This growth shows that New Zealand is doing well in trade despite changes in the global market. The rise in exports was due to increased demand in various sectors. This positive trend boosts confidence in New Zealand’s economy as it maintains a healthy trade balance.

Market Movements in December

Several market changes were noted during December. The Japanese Yen gained value, WTI oil prices went up, and the NZD/USD strengthened thanks to better trade data. The Federal Reserve has decided to keep the Fed Funds Target Range steady at 3.50%–3.75%. This decision was in line with what the market expected. In the crypto world, Bittensor’s tokens rose to $240. Additionally, Fidelity Investments plans to launch its stablecoin, the Fidelity Digital Dollar, on the Ethereum blockchain. It’s important to be cautious when dealing with financial markets and investments, as they come with risks. Always do your research before making financial decisions.

Federal Reserve and Market Strategies

The NZD/USD strengthened last year after the December export figures showed $7.65 billion. Official fourth-quarter data for 2025 confirmed this strong trend, supporting the kiwi’s current strength. Look into call options on the NZD/USD, as it’s testing resistance near the 0.6120 mark. Last January, the Federal Reserve held rates steady between 3.50% and 3.75%, indicating uncertainty about future cuts. With rates now between 2.75% and 3.00% after a recent pause, this uncertainty is causing fluctuations in the dollar. This situation is ideal for using straddle or strangle option strategies on major pairs like the EUR/USD to capitalize on upcoming movements. Gold surged to a record $5,600 in 2025, driven by a flight to safety and a weaker dollar. It has since retreated to around $5,450, as market anxiety has lessened. Selling puts below this level could help gather premium while betting that ongoing geopolitical risks will prevent prices from dropping further. The AUD/USD rallied in 2025 amid expectations of more rate hikes from the Reserve Bank of Australia. With Australian inflation cooling to 3.5%, discussions have shifted toward possible rate cuts later this year. Futures contracts will be important to monitor as traders adjust to a more dovish RBA stance for the second half of 2026. The rise of AI-related tokens like Bittensor (TAO) above $240 last year showed a resurgence of retail interest in crypto markets. That trend has continued, with TAO now trading above $350 and derivatives open interest reaching $215 million this month. While this reflects strong bullish sentiment, the volatility suggests using protective puts to safeguard any long positions. Create your live VT Markets account and start trading now.

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