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The analysts at Bank of America Global Research upgraded their end-2020 price target for NZD/USD to 0.6400, although doesn’t rule out further depreciation.

Key quotes

“The NZD is likely to be driven by external factors, particularly the coronavirus situation and global recession. China remains New Zealand’s largest trading partner and the first order impact on tourism, and to a lesser extent education services, has been evident.

“Demand for soft commodities would be affected too, albeit to a lesser extent than investment-driven hard commodities. And any weakness in risk assets ahead of the US election would typically weigh on NZD.”

“We revise up our end-2020 target for NZD/USD to 0.64 (from 0.62) but continue to expect depreciation into year-end given the RBNZ remains among the most dovish G10 central banks, as well as our stronger USD forecast.”