FXStreet reports that Jane Foley, Senior FX Strategist at Rabobank, expects the kiwi’s rally to run out of steam, however, forecasts the pair at 0.72 on a six-month view.

“Despite caution on the outlook for growth, the RBNZ is expecting that supply chain disruption and oil prices effects will cause headline inflation to temporarily exceed 2% for a period. In tune with the message of various other G10 central banks, the RBNZ can be expected to look through this until the labour market shows sustained improvement.” 

“We expect the RBNZ to retain a cautious stance on policy for an extended period.”

“We see limited scope for follow through on Wednesday’s NZD/USD rally in the near-term. That said, we see NZD/USD at 0.72 on a 6-month view assuming further signs of economic recovery on that horizon.”