The New Zealand Dollar (NZD) continues to face pressure as it transitions into a funding currency, primarily due to persistently low yields. This shift has been highlighted by BNY, which notes a significant deterioration in asset holdings, contributing to the NZD's ongoing weakness. Traders are closely monitoring the NZD/USD exchange rate, currently hovering around 0.5850, as market sentiment shifts toward safer assets.
The implications of this trend are notable, particularly as the NZD is increasingly utilized in carry trades. The currency's vulnerability against major pairs, such as EUR/NZD trading at approximately 1.7550, raises concerns for investors. As the economic outlook remains uncertain, the NZD may struggle to regain strength without a substantial improvement in yield differentials, making it crucial for traders to stay alert to further developments in the forex market.
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Data Source: FX Killer Analysis Team Updated: 2025-11-25 16:26
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.