It is a story of USD strength at the moment. However, economists at ANZ Bank expect NZD/USD to move back higher later in the year. 

It will be difficult for the NZD to outperform against the AUD

“We view the USD as overvalued based on our fair value estimate, although it’s hard to push back against USD strength right now in the context of rapidly rising central bank expectations.”

“Given strong commodity prices and higher interest rates, we should see the NZD strengthen against the USD later in the year as the USD softens.”

“With markets bringing forward expectations for hikes by the RBA, it’ll be difficult for the NZD to outperform against the AUD for now.”