Maybank suggests that due to the fragile risk sentiment, the likelihood of New Zealand’s central bank raising rates remains limited, thus diminishing the potential for significant gains in the Kiwi dollar in the near term.
Strategist Shaun Lim noted that attention will be on whether the New Zealand dollar against the US dollar can breach the psychological level of 0.60.
Another key level lies around 0.6170, which is near the 50-day moving average.
In the medium term, the New Zealand economy possesses certain underlying positive factors, but improvements in external demand and a faster recovery in the tourism sector might be necessary. Overall, the risk bias for the New Zealand dollar against the US dollar leans towards the downside, even though recent data from the Reserve Bank of New Zealand suggests the Kiwi dollar could be relatively resilient against other currencies.
