The New Zealand dollar has shown resilience compared to its Australian counterpart, since markets see less risk of tariffs for NZ. Despite the DOVISH position of the RBNZ – potentially delivering up to 75pb in cuts – the NZD behaves as a minor beta version of the AU in response to commercial headlines, the FX analysts of ING Francesco Pesole and Chris Turner point out.
The NZD is protected better than the AU in the midst of tariff risk
“The markets have consolidated the opinion that the New Zealand dollar is not as exposed to tariff days.”
“The New Zealand Bank reservation is still very open to cut rates again. We expect an additional 50pb or 75pb of additional relief, with a tilt towards 75pb since the bank has shown much more focus on growth than in inflation.”
“Short -term rates are not affecting FX much anyway. We hope that the NZD will continue to quote as a lower beta version of the audience when it comes to commercial holders.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
