NZD/USD is set to remain under downside pressure in the near-term. Nevertheless, the pair is set to recover toward 0.66 by the end of the year, economists at Bank of America Global Research report.

NZD to underperform AUD

“We expect a gradual recovery in NZD vs. USD in 2023 to 0.66 by year-end but expect it to underperform AUD, as the latter is better poised to benefit from China’s policy pivot. 

“Near term risks are to the downside due to USD strength and potential dovish pivot from the RBNZ.”