In September, New Zealand’s imports increased to $7.18 billion, rising from $7.12 billion the month before. This change is influenced by various global economic events and shifts in financial markets. Recent trade tensions between the US and China, along with talks of potential interest rate cuts by the US Federal Reserve, have shaken currency and commodity markets. As a result, the New Zealand Dollar has gained value, trading near 0.5750 against the US Dollar as trade negotiations progress.

Gold Prices Near Record Highs

The price of gold is close to reaching new record highs. Concerns over US government credit risks and expected rate cuts by the Federal Reserve are fueling this rise. Currently, gold is priced around $4,381 due to ongoing market uncertainties. In the UK, BlackRock has launched its iShares Bitcoin exchange-traded product on the London Stock Exchange. This offers UK retail traders a new way to invest in Bitcoin amid changing market conditions and trade discussions. Key economic questions will be addressed in the upcoming week, focusing on resolutions to US-China trade disputes and potential changes in inflation data. These issues are likely to impact market trends and decisions soon. The US Dollar Index is struggling around 98.50, and with the Federal Reserve expected to take a cautious approach, we see opportunities in selling dollar strength. September’s inflation data showed core CPI decreased to 2.8%, falling short of expectations and supporting the idea of potential rate cuts before the year’s end. Traders may consider buying puts on the dollar index or using bearish option spreads on USD pairs to benefit from this weakness. Gold is continuing its rise above $4,350, driven by ongoing US-China trade tensions and concerns about a possible US government shutdown. Data from the World Gold Council indicates a significant flight to safety, with central banks adding a record 350 tonnes to their reserves in the third quarter of 2025. We believe that using call options on gold futures (GC) can help maintain upside exposure while controlling risk in this uncertain market.

New Zealand and Australian Dollar Insights

The New Zealand dollar shows strength, boosted by increasing imports that indicate strong domestic demand. Similarly, the Australian dollar is getting support from a crucial minerals deal with the US, and Australia’s unemployment rate unexpectedly dropped to 4.1% last month. We see value in going long on AUD/USD or NZD/USD, possibly through futures contracts, to take advantage of both commodity currency strength and broader US dollar weakness. In a climate of broader market uncertainty, equities are taking a defensive position, with the VIX volatility index rising from 14 to over 19 in just the last two weeks. With renewed discussions on US credit risks, buying put options on the S&P 500 or other major indices is a wise strategy to hedge portfolios against potential downturns. This approach offers downside protection for a relatively small cost. The crypto market remains fundamentally strong, particularly following the launch of BlackRock’s Bitcoin ETP in the UK, which has attracted an average of over £50 million per week in inflows. While long-term targets are high, Bitcoin’s recent consolidation around the $150,000 level gives traders an opportunity to utilize options. A long straddle could be an effective strategy to prepare for the next major price movement, regardless of its direction. Create your live VT Markets account and start trading now.

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