The kiwi’s upside outlook is still intact vs the US dollar and, therefore, analyst at Credit Suisse stick to the NZD/USD forecast of 0.75.
“Underlying domestic drivers of NZD strength are expected to persist. Stimulus/high growth expectations remain in play with a majority Labor government. Chinese food inflation/Latin American drought reinforce export price outlook. High financial stability risks and April 2021 minimum wage hike limit potential for RBNZ dovish policy surprises.
“We continue to target 0.75 in the NZD/USD pair.”