Forecasts for NZD to TWD
The New Zealand dollar (NZD) has recently seen upward momentum, buoyed by a broader risk-positive sentiment in the markets. Analysts noted that this rally could be potentially influenced by relief among investors following U.S. trade announcements. However, the impending tariff measures introduced by U.S. President Donald Trump could introduce significant volatility for the NZD, especially considering that tariffs are likely to dampen demand for key commodities that New Zealand exports.
Economists suggest that if Trump's administration continues to enforce new and stricter tariffs, particularly aimed at Europe and China—two major trading partners—there could be adverse consequences for the NZD’s performance moving forward. Additionally, the correlation between the NZD and the Australian dollar (AUD) means that movements in the AUD/USD pair could also impact the NZD’s trajectory.
On the other hand, the Taiwan dollar (TWD) may face its own challenges, particularly due to the recently imposed 32% reciprocal tariff imposed by the U.S. on Taiwanese goods. Such tariffs are a part of the escalating trade tensions that could stymie the performance of Taiwan's crucial technology sector, which is vital for the TWD. The possibility of a global tech slowdown and the looming threat of geopolitical tensions with China could further destabilize the TWD.
Current exchange rate data shows that the NZD to TWD is trading at 19.42, which is notably 3.1% above its three-month average of 18.84. This figure indicates a stable range of 6.6% between 18.28 and 19.48 in recent trading sessions. Market watchers remain cautious, as ongoing global trade dynamics and geopolitical uncertainties will likely influence the NZD/TWD exchange rate in the short to medium term. As sentiment can shift rapidly, traders and businesses involved in international transactions should remain vigilant to these external factors that could impact currency valuations.
