NZD/USD to appreciate a little amid ongoing volatility – ANZ

The NZD has firmed in the past couple of months. Economists at ANZ Bank analyze the Kiwi’s outlook for the next months.

When global risks are high the NZD tends to be weaker

“Looking ahead, we expect to see ongoing volatility in the NZD as opposing forces impact its value.”

“If interest rates lift more in New Zealand than elsewhere that will put upward pressure on our currency.”

“Global risk continues to be a dominant factor influencing the value of our currency. In times of uncertainty, investors tend to favour the USD which is considered a safe haven. Therefore, when global risks are high the NZD tends to be weaker.”

“At present we expect the NZD to generally appreciate a little through our forecast horizon although it is still at the low end of the ranges seen in the past decade.”