The recent performance of the New Zealand dollar (NZD) against the Taiwanese dollar (TWD) has shown fluctuations influenced by various economic factors. Analysts note that the NZD has struggled, particularly in the wake of disappointing PMI data indicating a slowdown in manufacturing activity. This decline has been further exacerbated by the NZD's correlation with the Australian dollar (AUD), which has also been under pressure.
Recent central bank developments in New Zealand may have lasting effects on the NZD. The new Governor of the Reserve Bank of New Zealand, Anna Breman, is prioritizing low and stable inflation, particularly following a recent interest rate cut to 2.25%. This move signals a potential stabilization in the RBNZ's monetary policy, which analysts suggest may limit any further NZD gains unless economic conditions significantly deteriorate. Additionally, the annual inflation rate hitting 3.0% could put upward pressure on future monetary policy decisions.
Meanwhile, the Taiwanese dollar is bolstered by positive economic forecasts. Taiwan's economy is expected to grow by 7.37% in 2025, spurred by increasing global demand for artificial intelligence technologies. This strong growth outlook, combined with proactive trade negotiations aiming to reduce tariffs with the U.S., could support the TWD against currencies like the NZD.
Current pricing of the NZD to TWD is hovering at 90-day highs near 18.19, representing a 2.7% increase over its three-month average of 17.72. This range has exhibited stability, moving between 17.36 and 18.19. For businesses and individuals engaged in international transactions, understanding these dynamics is essential for timing currency exchanges effectively, as ongoing developments in both economies could influence future rates.
