Economists at ING think there are more downside risks to NZD compared to AUD over the course of 2023. 

NZD less attractive than AUD

“An ultra-hawkish Reserve Bank of New Zealand is good from a carry perspective, but has already generated a large slump in house prices. This trend may accelerate and pose serious threats to the economic outlook.” 

“We think the RBNZ will underdeliver and fall well short of their projected 5.5% peak rate to save the property market.”

“The resignation of the NZ prime minister does not have major implications for now, but might add a little uncertainty along the way.”

“AUD/NZD to break through 1.10 soon.”