The current market bias for the NZD to CNY exchange rate is range-bound.
Key drivers include interest rate expectations, with the Reserve Bank of New Zealand likely to implement rate cuts, diminishing NZD support. Meanwhile, the People's Bank of China may prioritize currency stability amidst expectations of gradual appreciation. New Zealand’s economic growth appears stable, although any significant changes in trade figures could still influence the NZD's performance.
In the near term, the NZDCNY pair is expected to trade within its recent stable range, reflecting slight fluctuations around current levels.
Upside risks for the NZD could stem from better-than-expected trade figures, bolstering sentiment. Conversely, any sudden aggressive policy easing by the Chinese authorities could lead to a downward adjustment in the CNY, putting pressure on the NZD. Overall, external factors, particularly from global economic conditions, will remain crucial in shaping the exchange's performance.
