The market outlook for the NZD against the XPF is currently bearish.
Key drivers include the possibility of interest rate cuts from the Reserve Bank of New Zealand (RBNZ), with forecasts suggesting a terminal rate of 1.75% by mid-2026. Moreover, sentiments regarding a weakening New Zealand economy contribute to downward pressure. Despite a stable exchange rate historically, recent reports indicate subdued investor expectations for the NZD following optimistic GDP figures.
The expected trading range for the NZD/XPF is likely to remain stable, given its recent performance within a 2.9% range. If exports show strong growth in the upcoming trade figures, this could provide a boost to the NZD. Conversely, if global risk sentiment worsens, it may further constrain the NZD, leading to increased weakness against the XPF.