NZD/USD: Weaker By Year-End – BofA

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What is the forecast for NZD/USD by year-end?

Here is their view, courtesy of eFXdata:

Bank of America Global Research discusses NZD outlook and targets NZD/USD at 0.64 by year-end.

The NZD is likely to be driven by external factors, particularly the coronavirus situation and global recession. China remains New Zealands 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,” BofA notes. 

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,” BofA adds. 

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Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.