Forecasts for NZD to TWD
Recent currency market updates indicate significant volatility in the NZD to TWD exchange rate, currently trading near 17.95. This reflects a 3.9% decrease from its three-month average of 18.67 and has been characterized by a substantial 11.9% trading range, oscillating between 17.41 and 19.48.
Analysts note that the New Zealand dollar (NZD) has faced downward pressure due to geopolitical tensions and trade policies. The announcement of a 10% tariff on imports from New Zealand by U.S. President Donald Trump has raised concerns about potential negative impacts on demand for New Zealand's key commodities, which are vital for the NZD's strength. Additionally, the NZD's correlation with the Australian dollar (AUD) has led to further depreciation following the recent Reserve Bank of Australia announcement. Given this correlation, any continued weakness in the AUD could exert similar pressures on the NZD.
On the other side, the Taiwan dollar (TWD) faces its own set of challenges. The US has imposed a 32% reciprocal tariff rate on Taiwanese goods, which, amid a global tech slowdown, could dampen the TWD's performance. The ongoing geopolitical risks, particularly concerning Taiwan's relationship with China, further complicate the outlook for the TWD.
Looking ahead, market experts anticipate that the NZD could remain under pressure from the trade tensions initiated by the Trump administration, which may also contribute to risk aversion impacting demand for risk-correlated currencies. Conversely, the TWD's prospects depend heavily on how well Taiwan navigates trade challenges and regional tensions. As these dynamics evolve, businesses and individuals looking to engage in currency exchanges should monitor these developments closely to mitigate exposure to unfavorable shifts in the NZD to TWD rates.
