The New Zealand dollar showed flexibility compared to its Australian counterpart, as markets see less introductory risks for New Zealand. Although the RBNZ Dovish-which provides up to 75 km per hour-NZD is behaved like a low version of AUD in response to commercial addresses, FX FX analysts from ing Francesco Pesole and Chris Turner Note.
NZD protects itself better than Aud amid the dangers of tariffs
“The markets have strengthened the opinion that the New Zealand dollar is not subjected to tariffs like AUD. Because of the dependence on Australia on the demand for China. New Zealand exports more than Australia to the United States in terms of gross domestic product (2.2 % compared to 0.9 %), but both countries are unprecedented through the harsh rate of 10 % even before the suspension 90 days.”
“The New Zealand Reserve is still very open to lower prices again. We expect either 50 bits per hour or 75 basis points of additional dilution, with a bias towards 75 km as the bank showed a greater focus on growth than inflation.”
“The front end rates do not affect the FX anyway. We expect NZD to continue trading as a trial version less than AUD when it comes to commercial addresses.”
