Forecasts for NZD to TWD
Recent forecasts for the NZD to TWD exchange rate reflect a complex interplay of global trade dynamics and local economic factors. Following the announcement of a 10% tariff on imports from New Zealand by U.S. President Donald Trump, analysts note that the New Zealand dollar (NZD) has managed to strengthen despite a recent interest rate cut by the Reserve Bank of New Zealand (RBNZ). This resilience suggests that investors are currently focused on broader market risk dynamics rather than immediate domestic economic data.
However, economic experts warn that heightened trade tensions under a potential continuation of Trump’s presidency could lead to stricter tariffs affecting key commodities. This could ultimately dampen demand for the NZD, particularly as New Zealand's economy is closely tied to international commodity markets. The NZD's correlation with the Australian dollar (AUD) means movements in the AUD can also directly influence the ‘kiwi’, further impacting cross-currency trends.
On the Taiwan dollar (TWD) side, the recent imposition of a 32% reciprocal tariff on goods from Taiwan as a component of the ongoing trade conflict with the U.S. poses additional risks. Analysts suggest that a slowdown in global technology demand could weigh on the TWD, especially given Taiwan’s reliance on its significant tech sector, including major semiconductor and electronics companies. Political tensions in the region, particularly concerning threats from China, heighten uncertainty and could further impact the TWD's stability.
Currently, the NZD to TWD exchange rate has reached seven-day highs near 18.85, which is about 0.8% above its three-month average of 18.70. The exchange rate has shown stability, trading within a range of 5.0% between 18.28 and 19.20 in recent months. As markets look ahead, shifts in global economic sentiment, trade relations, and local monetary policies will be crucial drivers of the NZD to TWD exchange rate moving forward.
