APAC Market Bulletin: A Year in Review and a Look Ahead

What this episode covers

In this episode of FX in Focus, we have a conversation with David Britten and Peter Dragicevich about the macroeconomic themes that shaped 2025, and take a look ahead to what may be in store for 2026. They describe the 2025 market as volatile but resilient, driven largely by the disruptive start to Donald Trump’s second term. US trade tariffs and policy uncertainty sparked sharp swings in sentiment. Ultimately, the US dollar posted its largest annual decline in over 20 years. A major positive surprise was the strength of the global AI investment boom, which supported equities, productivity, and global growth. Outside the US, Asia and Australia performed better than feared, helped by trade diversification, stimulus, and lower interest rates. Peter and David also discuss their 2026 outlook, predicting that although markets appear calm and perhaps even complacent with low volatility and stretched valuations, risks tied to US policy, geopolitics, central bank leadership changes, and AI valuations could trigger renewed turbulence. The outlook for the Australian and New Zealand dollars is cautiously constructive, though gains may be capped as tighter monetary policy may slow growth. Tune in now to listen to the entire episode!