The Reserve Bank of New Zealand (RBNZ) is not lifting the kiwi despite its hawkish stance. Economists at ING expect the NZD/USD pair to start its recovery next year.

Hawkish RBNZ not helping much

“A hawkish RBNZ is not preventing NZD from suffering from a rather unfavourable market environment for commodity FX.”

“Like AUD, the exposure to China’s sentiment remains another major question mark.” 

“An NZD recovery should only be a 2023 story.”