Today is ‘D-Day’, or as Trump labels it, ‘Liberation Day’, for the world and global trade. It will be announced exactly what are the tariffs that will be imposed on the ‘reciprocal’ tariff front, 25% Non-US Auto tariffs and perhaps any leniency? There is talk of ‘caps’ on tariffs and arrangements for those who announce they will remove/reduce tariffs, on US goods and services. This will all be revealed today and also come into effect. This has driven markets for the last couple of months, so it may well see a relief rally, considering certainty is king. On the economic front, US ADP Jobs reports a big jump in private sector jobs, adding 155,000, almost double what was expected. The news saw the US Dollar soften, with the EUR rallying to 1.0850, while the GBP jumped above 1.2950.The weaker reserve allowed the NZD to regain 0.5700, although the AUD failed to recover 0.6300, despite the weaker Dollar. The AUD has underperformed of late and the reasons may well be forthcoming in the next couple of hours, or days. All markets keenly await the tariff details set to be announced by President Trump today.
