2021 was a “bad” year for the kiwi. But having fallen from a high of 0.746 in January 2021 to a low of 0.653 in December, economists at ANZ Bank think it will fare better in 2022. The NZD/USD pair is expected to climb gradually to 0.70 by year-end.

Downgraded forecast for the NZD by a few cents

“Our forecasts do call for gradual NZD/USD strength over 2022, but we are no longer as bullish as we were and have recently downgraded our track.” 

“We now see NZD/USD topping out at 0.70 at year-end, down from 0.72 in our earlier forecasts. But if US growth and inflation continue to surprise to the upside, even 0.70 might be a challenge.”