The NZD/MYR exchange rate remains volatile amid mixed trading conditions for the New Zealand dollar, influenced by changing market risk sentiment. Currently, the NZD is trading at approximately 2.5320, just below its three-month average, following a stable range between 2.4987 and 2.5760. Analysts suggest that upcoming New Zealand consumer confidence figures could provide support for the kiwi if they show improvements, which would reflect positively on economic sentiment.
Conversely, the Malaysian ringgit faces significant headwinds following recent announcements regarding tariffs from the U.S. government. The imposition of a 24% reciprocal tariff on Malaysian imports as part of a broader trade conflict is contributing to a strained economic outlook. Experts indicate that such tariffs could further depress regional currencies, including the MYR, especially as the fear of a trade war has already negatively impacted market risk appetite, leading to declines in other Asian currencies.
Additionally, the correlation between the NZD and commodity markets—especially as key trading partners like China face tighter tariffs—raises concerns about demand for New Zealand’s exports. There's speculation that a potential second term for Donald Trump could lead to stricter tariffs that may further dampen commodity demand, which would negatively affect the NZD's performance.
On another front, fluctuations in the price of Brent Crude oil, currently at $69.67—2.5% above its three-month average—do add another layer of complexity for the MYR. With the oil price trading in a highly volatile range, any significant movements could influence Malaysian economic stability and, by extension, the MYR’s strength against the NZD.
Markets suggest that traders should remain cautious, keep an eye on geopolitical developments, and be prepared for potential volatility as these tariffs and commodity price shifts unfold.