Economists at ANZ Bank have downgraded their NZD forecasts. Still, they expect the kiwi to advance towards 0.62 by the end of the year.

It is difficult to expect anything other than ongoing USD domination

“We have downgraded our NZD forecasts, and now expect it to hold broadly steady over coming months.”

“While we do expect a mild appreciation to 0.62 by year-end, we regard this as a broadly neutral outlook, that sandwiches the NZD between the AUD (which we are more upbeat on) and other G10 currencies like EUR, GBP and JPY.”

“At present, the weakness in the NZD has more to do with strong demand for USD than anything specific to our currency. We expect the NZD to gradually appreciate, rising to USD 0.63 by March.”