The NZD has steadily appreciated in recent months. Economists at ANZ Bank are expecting the Kiwi to gradually firm over the year.

NZD/AUD forecasts downgraded 

“We upgraded our NZD forecasts – we now see it reaching 0.65 in Q3, 0.67 in Q4, and 0.68 by Q4 next year.”

“We expect positive economic ripples from the rebound in Chinese activity to be another source of NZD strength, particularly against currencies that are less sensitive to Chinese demand (GBP, CAD).”

“Our new forecasts have NZD/AUD continuing to decline. This is predicated on the strength of Australian economic momentum, relative to New Zealand, which is much further ahead in the inflation, growth and interest rate cycle.”