NZD/USD to strengthen to 0.75 as economic recovery continues – CIBC

NZD/USD has performed strongly in the first two months of the year, extending a strong finish to the previous year and now to levels last seen in 2018. Patrick Bennett from CIBC Capital Markets expects to see further gains as activity recovers and forecast the kiwi at 0.75 in the coming months.

Key quotes

“We see NZD continuing tracking to stronger levels as the economy rebound continues and global reflation pricing supports commodity prices, though we doubt the same pace of gains seen to date will be repeated over the next quarter.”

“RBNZ, as other central banks have done, has reconfirmed its commitment to keep policy accommodative for some extended time. The recent backing up in global yields sees NZ bond yields near the highest in G10, and we expect that fact to attract portfolio flows and support the NZD.”

“We doubt there are tools available to change the NZD outcome over more than the short-term. We forecast gains for the NZD against the USD and JPY, and some underperformance against the AUD.”


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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slips from highs as investors await US Retail Sales

EUR/USD has backed down from the highs near 1.20 as the dollar benefits from the Fed's upbeat mood. All eyes are on US Retail Sales, which are set to leap. 


GBP/USD rises toward 1.38 ahead of US data, Brexit meeting

GBP/USD is edging up toward 1.38, reversing its previous falls in tense trading ahead of all-important US retail sales. A Brexit-related meeting on Northern Ireland is also eyed. 


Bitcoin on-chain data shows BTC is reaching “peak hype”

Bitcoin’s on-chain data suggest a short-term correction may be needed before Bitcoin could continue its price rally. Market sentiment toward Bitcoin poses a major concern for the cryptocurrency, indicating it is approaching “peak hype.”

Read more

XAU/USD looks to retest $1750 as USD bounce fizzles ahead of US Retail Sales

Gold is breaking higher as the US dollar rebound loses steam. The US Treasury yields retreat ahead of the Retail Sales release. XAU/USD is teasing symmetrical triangle breakout on the 1H chart.

Gold News

Breaking: Coinbase jumps 10% pre-market: ARK's Cathie dumps Tesla (TSLA) to COIN it in

Cathie Wood of ARK Invest fame clearly likes the crypto space as her ARK Invest fund purchased $246 million worth of COIN on the first day of trading.

Read more