NZD/SGD Outlook:
The NZD/SGD is slightly positive, but likely to move sideways as it trades above its recent average and remains in the middle of the 3-month range.
Key drivers:
- Rate gap: The Reserve Bank of New Zealand maintains a hawkish stance with a high cash rate, while Singapore's monetary authority adopted a more cautious approach to support growth.
- Risk/commodities: Strong dairy prices are beneficial for New Zealand's export economy, providing support for the NZD amid global uncertainties.
- One macro factor: Singapore's GDP growth remains resilient, supporting the SGD in the face of global trade tensions that could impact the local economy.
Range:
The NZD/SGD is expected to hold steady within its recent range, without significant movement toward either extreme.
What could change it:
- Upside risk: A shift in global risk appetite could support the NZD if trade tensions ease.
- Downside risk: Deteriorating trade figures from New Zealand could pressure the NZD lower.
