The market bias for the NZD to TWD exchange rate is currently bearish, with anticipated downward pressure.
Key drivers include:
- The Reserve Bank of New Zealand (RBNZ) is expected to implement rate cuts, which can weaken the NZD against the TWD.
- Taiwan's central bank has committed to avoiding currency manipulation, contributing to TWD stability amidst global fluctuations.
- Global risk sentiment remains fragile, as forecasted economic instability may hinder the NZD’s recovery.
In the near term, the NZD to TWD rate is likely to trade within a stable range, reflecting its recent 5.8% fluctuation between 17.36 and 18.36.
Upside risks could arise if New Zealand's export performance improves sharply, lending strength to the NZD. Conversely, a significant deterioration in global economic conditions or further rate cuts by the RBNZ could further suppress the NZD against the TWD.