NZD/USD to rise towards 0.66 by year-end – Westpac
|Economists at Westpac expect that safe-haven demand will give way to a period of US dollar weakness over the year ahead, with a related rise in the New Zealand dollar and other commodity currencies. However, the potential for gains relative to the Australian dollar looks limited, with the NZD/AUD set to hold around current levels.
US dollar to trend down over the coming year
“We expect that the recent period of safe-haven demand will give way to US dollar weakness, with a sharp slowdown in US consumption and investment spending expected over 2023. Consistent with that, we expect to see the US dollar trending down over the coming year.”
“Underpinned by weakness in the US dollar, we expect the New Zealand dollar will rise to 66 cents by year’s end, with a further lift on the cards through 2023.”
“We expect the AUD/NZD pair will remain around the 0.90 level through 2023, with limited scope for a break to the upside despite the prospect of a sharper deceleration in growth for Australia.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.