The New Zealand dollar is facing depreciation pressure. Economists at CIBC Capital Markets expect the NZD/USD pair to slump under the 0.62 level.

Losing ground on a softer economic outlook

“We see pressures continuing to build in coming weeks, and anticipate a retest of recent NZD/USD lows below 0.62.” 

“A key area of resistance in NZD/USD is between 0.6530 (January low) and 0.6576 (June high). While spot is held below this band, risk is for another test of the downside.”

“Higher rates are a negative that will be exacerbated by weak activity in China – New Zealand’s largest trading partner, and by the outrun of higher rates and softer outlooks globally. In this environment, higher policy rates in New Zealand will not support the currency beyond present levels.”