Analyst at Danske Bank Minna Kuusisto expects NZD/USD to head towards the 0.6900 area in a year’s time.
“The NZD has depreciated faster than we expected. Approaching the oversold territory, we expect to see a temporary move higher in NZD/USD as the RBNZ cut in November is fully priced in”.
“We are relatively positive on EM and expect a gradual recovery in commodity prices. Attractive carry has supported the NZD during the era of global monetary easing, causing further downward pressure on inflation”.
“We expect monetary policy divergence to remain the main driver for NZD/USD and see the pair drifting down to 0.69 next year as the Fed resumes its hiking cycle and RBNZ keeps its cautious tone”.
“We expect a temporary correction in NZD/USD to 0.72 in 1M as the market has already fully priced in a November rate cut. For 3M, 6M and 12M, we keep our forecasts unchanged at 0.72, 0.70 and 0.69, respectively”.
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 securities. 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 Forex 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.