The kiwi is back above 0.65 after a volatile week. Nonetheless, economists at ANZ Bank have downgraded the NZD/USD year-end forecast to 0.67 from 0.69.

Markets more focussed on hard landing risks and high energy prices

“We have downgraded our year-end forecast from 0.69 to 0.67. That reflects our ongoing expectation that the USD will continue to moderate, but also that markets have shifted their focus away from carry and the erstwhile strong economy and are instead now more focussed on hard landing risks and high energy prices.”

“NZD/AUD has slipped to just above 0.90; we think that’s logical given hard landing fears here, which contrast with the widely held view in markets that the RBA hasn’t done enough to cool the Australian economy.”