Economists at Westpac see potential for further NZD weakness during the month ahead. Kiwi is likely to test 0.6200 and possibly fall lower.
Potential for NZD/USD to rebound towards 0.68 by end-2022
“NZD/USD remains vulnerable to a decline towards the 0.6000 area.”
“The RBNZ MPR next week has the potential to surprise the NZD in either direction. For example, a hawkish surprise could comprise expressed discomfort with the falling NZD lifting tradables inflation. A dovish surprise could comprise concerns regarding the global economic outlook.”
“By year-end, assuming sentiment stabilises, there is potential for the NZD to rebound towards 0.68. By then, the Fed story should be fully priced into the USD, while the spotlight could shift to higher NZ commodity prices.”