The New Zealand dollar (NZD) has had a good performance, reports Jane Folley, Rabobank FX analyst.
It is likely that the NZD/USD has difficulties to rebound in the coming weeks
“So far this year, it is the second G10 currency with the best performance after the AUD. This despite the fact that the NZD/USD approached 0.5542 on January 13, which was its lowest level since October 2022. A key factor behind the emergence of a better tone in the NZD is the growing confidence that the New Zealand economy will be able to get away from last year’s recessive conditions and record an economic recovery in next year. “
“That said, it is widely expected that this will require more rates cuts by the RBNZ this year. Although part of the generalized strength of the USD has weakened this week due to the relief that tariffs have not been announced by President Trump in The first days after its inauguration, we hope that the USD will remain firm in next year. “
“This suggests that it is likely that the NZD/USD has difficulties to rebound significantly in the coming weeks. The NZD/USD is currently positioned near the 50 -day SMA at 0.5524. This will probably offer resistance.”
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.
