Tropical cyclone Daman began life on 11 February as a shallow depression embedded in the monsoon trough near Tokelau. Initial movement of the circulation was towards the west-southwest under the influence of an easterly steering flow. A few days later, in response to an intensification of the subtropical ridge to the south, the low began to accelerate, passing through the Tuvalu Islands during 14 February.
From this point, the system began to steadily develop and at 0100 UTC 15 February, whilst located approximately 300 km northeast of the Banks Islands in Vanuatu, Daman was named. Twelve hours later, the cyclone brushed the northern tip of Vanua Lava before passing to the northwest of Vanuatu's largest island, Espiritu Santo, and heading out into the open waters of the Coral Sea.
At around 0600 UTC 16 February, the track of tropical cyclone Daman began curving to the southwest, and then south-southwest, under the influence of a strengthening northerly component in the steering level flow. At 0000 17 February, Daman reached its maximum intensity with mean winds estimated at 40 m/s.
The system began weakening shortly thereafter as environmental shear increased, and by 1800 UTC 18 February, near latitude 30.°S, Daman lost its tropical cyclone characteristics. Soon afterwards, the low-level extratropical depression became fully embedded in mid-latitude westerlies and was advected rapidly eastwards, bringing gale-force winds to parts of the North Island of New Zealand. At Manakau Heads near Auckland, a maximum gust of 57 m/s was recorded during the evening of 21 February.
Although Daman passed through the northern islands of Vanuatu, it was a relatively weak cyclone at this stage. The majority of Daman 's life, in particular while it was at its most intense, was spent over the open waters of the Coral Sea. Accordingly, no reports of injury resulting from this cyclone have been reported. However, gales associated with the ex-cyclone depression were responsible for fallen power lines and significant tree damage around the streets of Auckland.