NZD/CHF Outlook: Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driver for further gains.
Key drivers:
• Rate gap: The Reserve Bank of New Zealand has cut interest rates, while the Swiss National Bank has maintained a zero percent policy rate, supporting a relatively stronger NZD.
• Risk/commodities: With oil prices remaining below average, the New Zealand dollar's value may be impacted, but its recent gains have held firm.
• Macro factor: New Zealand's economic contraction in private sector growth may challenge the NZD's ability to maintain its strength.
Range: The NZD/CHF rate is likely to hold within its recent range, drifting as investors assess upcoming factors.
What could change it:
• Upside risk: A shift in global trade tensions favoring New Zealand could bolster the NZD further.
• Downside risk: Renewed concerns over the Swiss franc's strength leading to negative rates could apply pressure on the NZD/CHF.
