Since the middle of February, NZD/USD has traded within a relatively tight range between 0.61 and 0.63. Economists at ANZ bank forecast the pair at 0.66 by the end of the year.

Kiwi to appreciate mildly further over the course of 2023

“We still see the RBNZ hiking the OCR to a peak of 5.25% by May 2023 and holding it there until at least the end of 2024. But the tight labour market and uncertain impact of the recent cyclone pose upside risks to the outlook for both inflation and the OCR.”

“Our forecasts have the Kiwi appreciating mildly further over the course of 2023, but imbalances like the current account deficit are weighing on sentiment.”

“We see the NZD/USD pair finishing the year at 0.66.”