Forecasts for the New Zealand dollar change all the time, affected by news events and relative sentiment towards the New Zealand economy. This continually updated article reviews the latest forecasts from banks and FX experts as well as news and recent movements of NZD in the currency markets.
NZD in the markets
The New Zealand dollar weakened in June to a 7-month low against the euro, at rates below €0.58.
At US$0.65, the kiwi remained weak against the greenback, 6 percent lower than rates in March.
Against the Australian dollar, NZD has been steady in recent months, having spent much of its time between A$0.94 and A$0.95.
Robbing New Zealand's currency of gains in 2019 have been lower NZ interest rates, reduced risk appetite spurred on by an escalation in the US-China trade standoff, and high correlations with other weak currencies, including the Australian dollar and yuan.
Citigroup analysts said in June that the RBNZ will likely be a policy follower (if other central banks cut or threaten to cut rates, they will too) with the intent of keeping kiwi exchange rates at competitive levels for NZ businesses.
In 3 months’ time, Citi expects NZD/AUD, NZD/USD and NZD/EUR at A$0.955, $0.66 and €0.59 respectively.
Risks to the above 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.
You can also read our full Foreign Exchange Guide to New Zealand.
NZD/USD – Historical Rates
|1 Day||-0.5%||0.6363||11 Nov 2019|
|7 Day||-0.7%||0.6373||05 Nov 2019|
|30 Day||0%||0.6328||13 Oct 2019|
|3 Month||-1.7%||0.6439||14 Aug 2019|
|1 Year||-5.8%||0.6718||12 Nov 2018|
|5 Year||-19.6%||0.7872||13 Nov 2014|
|10 Year||-14.4%||0.7398||14 Nov 2009|
*For period to 12-Nov 21UTC when NZD/USD was 0.6329
NZD/AUD – Historical Rates
|1 Day||-0.4%||0.9291||11 Nov 2019|
|7 Day||0%||0.9250||05 Nov 2019|
|30 Day||-0.6%||0.9311||13 Oct 2019|
|3 Month||-2.9%||0.9533||14 Aug 2019|
|1 Year||-1.2%||0.9364||12 Nov 2018|
|5 Year||+2.4%||0.9036||13 Nov 2014|
|10 Year||+16.5%||0.7945||14 Nov 2009|
*For period to 12-Nov 21UTC when NZD/AUD was 0.9253
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