NZD has a high interest rate (around 5.5% as of 2025), as New Zealand is battling inflation and maintaining tight monetary policy.
CHF has a very low or even negative interest rate (Switzerland traditionally keeps rates low due to deflationary tendencies and currency stability).
📉 Current Imbalance:
The NZD/CHF currency pair is at historically low levels, meaning the Swiss franc is too strong relative to the New Zealand dollar.
This is a fundamental imbalance, because NZD should be stronger (higher yield = more attractive asset). and gain big SWAP
💼 Carry Trade:
This is a perfect setup for a carry trade: borrow CHF at low interest and invest in NZD at high interest.
When this type of trading becomes popular, it puts upward pressure on the pair – NZD is bought, CHF is sold.
📈 Conclusion:
NZD/CHF has potential to rise:
To correct the fundamental imbalance.
Because the market may shift toward carry trades.
If central banks (especially SNB) remain dovish, while RBNZ stays hawkish.
CHF has a very low or even negative interest rate (Switzerland traditionally keeps rates low due to deflationary tendencies and currency stability).
📉 Current Imbalance:
The NZD/CHF currency pair is at historically low levels, meaning the Swiss franc is too strong relative to the New Zealand dollar.
This is a fundamental imbalance, because NZD should be stronger (higher yield = more attractive asset). and gain big SWAP
💼 Carry Trade:
This is a perfect setup for a carry trade: borrow CHF at low interest and invest in NZD at high interest.
When this type of trading becomes popular, it puts upward pressure on the pair – NZD is bought, CHF is sold.
📈 Conclusion:
NZD/CHF has potential to rise:
To correct the fundamental imbalance.
Because the market may shift toward carry trades.
If central banks (especially SNB) remain dovish, while RBNZ stays hawkish.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.