Forecasts for NZD to TWD
Recent forecasts for the NZD to TWD exchange rate indicate a cautious outlook influenced by ongoing trade tensions and global market sentiment. Analysts note that the New Zealand dollar (NZD) is closely correlated with risk appetite in the markets, and its movement may be further complicated by the imposition of tariffs by the U.S. The recent announcement of a 10% tariff on imports from New Zealand by President Trump adds to the pressure on the NZD, potentially reducing demand for New Zealand's key commodities and thereby weakening the currency.
In addition to the U.S. tariffs, the global economic landscape may further impact the NZD. The heightened likelihood of a return to a Trump presidency could lead to a new wave of tariffs, particularly affecting major trading partners such as China and Europe. Such developments are likely to dampen commodity demand, which would have a direct influence on the NZD.
Conversely, the Taiwan dollar (TWD) faces its own challenges, particularly with the 32% reciprocal tariff imposed by the U.S. and ongoing geopolitical tensions between China and Taiwan. The significant technology sector in Taiwan could be vulnerable to a global tech slowdown, which would be detrimental to the TWD. Experts suggest that any escalation in these tensions could lead to further volatility in the currency.
Currently, the NZD to TWD rate stands at 17.77, which is significantly below its three-month average of 18.74. The pair has experienced a volatile trading range of 11.9%, between 17.41 and 19.48. Given the current dynamics, market analysts predict that if sentiment remains negative, further weakness in the NZD could be observed, which would also influence the cross-rate against the TWD. Businesses and individuals engaged in transactions between New Zealand and Taiwan may need to strategize carefully to navigate this fluctuating landscape.
