NZD/USD is lower, sinking back to the mid-0.56s. Economists at Bank of America target the pair at 0.56 by year-end.

NZD to underperform AUD

“We revise down our end-2022 forecast for NZD/USD to 0.56 (previously 0.65) with recent developments making a return to the 0.60s unlikely in 2022. Poor global economic and financial conditions suggest a move below our year-end forecast is likely in the near term.”

“We continue to expect NZD to underperform AUD, the latter better poised to benefit from China’s easing in commodity-intensive sectors.”