NZD/USD has tested two-year low around 0.5920. Economists at HSBC expect the pair to extend its downfall over the coming weeks.

NZD is likely to weaken against the AUD

“In the coming weeks and medium-term, we expect the NZD to weaken against the USD”

“Like the AUD, the NZD will likely be affected by fragile risk appetite.”

“It is worth noting that hard-landing risks are arguably higher in New Zealand than in Australia. This means the NZD is likely to weaken against the AUD, with a gradual increase in AUD/NZD.”