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The kiwi is expected to remain stubbornly strong for the rest of the year as enjoys the upbeat market mood following New Zealand’s success against coronavirus. Therefore, economists at ANZ Bank expect NZD/USD to trade near the 0.65 level in the coming months.

Key quotes

“Kiwi has found more support in the current market environment than we were anticipating. Partly it reflects the good news that we beat back Covid-19 and so are in a better position than most, but it is not good news for farmers as overseas returns are eroded by a stronger NZD in farmgate terms.” 

“We no longer anticipate a significant fall in the NZD in the months ahead. We now anticipate the NZD/USD pair will maintain a value of near 0.65 through into 2021.”