The USD to NZD exchange rate is currently biased bearish.
Key drivers include the expected cuts in US interest rates, which are anticipated to weaken the USD further. In New Zealand, despite strong GDP figures, the Reserve Bank's plans for potential rate cuts may limit the NZD's upside. Additionally, global economic growth prospects appear to support NZD against the USD.
The near-term trading range for the USD/NZD currency pair is likely to be stable but may show limited fluctuations given its recent performance.
An upside risk to the NZD could arise if New Zealand’s exports increase significantly, bolstering its economy. Conversely, a downside risk for the USD might develop from a sharper-than-expected global economic downturn, reinforcing the bearish sentiment around US rates and potentially prompting more aggressive easing from the Federal Reserve.