The kiwi has held up well despite global risk sentiment fading. Economists at ANZ Bank expect the NZD/USD pair to trade at 0.70 by the end of 2022.

Still mixed views on how things will unfold

“While higher oil prices aren’t a positive for NZ, the generalised rally in commodity prices is, and the NZD seems to be able to latch on to any thread of positivity at the moment.” 

“Our forecasts call for a mild further strength by year-end (0.70) but we also acknowledge risks of a hard landing, which is becoming a bigger talking point in markets as each day passes. Ahead of expected back-to-back 50bp OCR hikes we think NZ short end rates haven’t yet peaked; all else equal that’s likely to limit how much lower the NZD might be able to go (until the Fed catches up).”