In the final two months of last year, the USD was the best performing G10 currency, with the NZD trailing towards the bottom of the pack on this horizon. Economists at Rabobank expect the NZD/USD pair to bounce back towards 0.71 over the next three months.

USD to remain firm in the first half of 2022

“We anticipate that the greenback will remain firm in the first half of this year on the back of Fed policy tightening. Later in the year, we expect that some of the USD’s advantage will be sapped by economic recoveries elsewhere in the G10 and anticipate that this will allow scope for NZD/USD to drift higher.”

“On the assumption the RBNZ remains hawkish we see scope for NZD/USD to creep back to 0.71 on a three-month view.”