As the NZ economy’s performance since covid has been impressive, providing fundamental support for NZD outperformance, economists at Westpac target NZD/USD 0.7200 by year-end. What’s more, the kiwi is forecast to surpass the 0.7500 level by mid-2021.
Key quotes
“The NZD/USD pair retains potential for slightly further upside near-term, targeting 0.7200 by year-end, although we caution it is technically stretched and in need of a correction. That aside, we expect to see the kiwi above 0.7500 by mid-2021.”
“Domestic NZ economic data remains buoyant (housing, retail spending and consumer sentiment recently), and this week’s events (HYEFU on December 16, GDP on December 17) should extend that theme.”
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