Australia, NZ dollars nurse losses as Trump's tariff war turns to Europe

SYDNEY, Feb 27 (Reuters) - The Australian and New Zealand dollars were under pressure for a fifth straight session on Thursday after U.S. President Donald Trump targeted Europe in his global tariff war.

The Antipodean economies are heavily reliant on resource exports and their currencies are particularly vulnerable to risks of a global trade war.

Trump on Wednesday floated the idea of a 25% "reciprocal" tariff on European cars and other goods, though he raised hopes for another month-long pause on planned steep tariffs on imports from Mexico and Canada.

Having failed to break above the 2025 highs, the Aussie AUD=D3 was struggling at $0.6302 after dropping 0.6% overnight to a two-week low of $0.6296. Resistance is now at the 100-day moving average of $0.6394.

The kiwi NZD=D3 was similarly downbeat at $0.5694, having fallen 0.5% overnight. Resistance is around $0.5720.

"The Australian and New Zealand dollars have fared worse than almost every other currency over the past few months. We think they will continue to do so," said Thomas Mathews, head of markets, Asia Pacific, at Capital Economics.

"We suspect investors are still a bit too optimistic about a trade war reprieve. And we’re especially downbeat on the medium-term prospects for China’s economy.

Business investment in Australia unexpectedly dipped in the December quarter, data showed on Thursday, suggesting a slight drag on economic growth. Most economists had expected a small pick-up in growth at the end of last year.

The Reserve Bank of Australia Deputy Governor Andrew Hauser said in parliament Thursday morning that the central bank needed to see more good news on inflation before cutting interest rates again. Global uncertainty due to Trump's tariffs was one reason that the RBA cut rates this month, he added.