NAB have revised upwards their NZ dollar forecasts now expecting the NZD at US68c by year-end.
Risks to the NZD forecasts come in the form of US-China trade tensions (New Zealand has very strong trade links with China) and any subsequent depreciation of the Chinese yuan because of NZD’s high correlations with Asian currencies.
National Australia Bank (NAB) have revised upwards their NZ dollar forecasts now expecting the NZD/USD rate at US73c by June 2022, up from their previous forecast of US71c. For 2020, it sees the NZD at US68c by year-end, up from a predicted US66c.
Although New Zealand has nearly eliminated COVID-19 and wound back restrictions, its international borders are likely to be closed until 2021. This means the economy will be slower to rebound as its reliance on tourism outweighs that of major counterparts. Despite the New Zealand economy’s reliance on tourism, the NZD has been well supported by positive risk sentiment, higher NZ–US short term yields and robust commodity prices.
Read more about FX Broker and Bank analysts’ predictions for AUD to NZD future trends in our blog article BER Review of AUD to NZD Broker & Bank Forecasts.