NZD/USD: Year-end forecast lowered to 0.72 despite falling Delta case numbers – ANZ

NZD/USD starts the day around 0.7050 as the kiwi is holding up well, buoyed by falling Delta case numbers. Nonetheless, economists at ANZ Bank have downgraded NZD/USD year-end forecast to 0.72 from 0.75.

Falling Delta case numbers lift NZD sentiment

“Falling Delta case numbers have almost certainly helped lift NZD sentiment, and while we are not out of the woods yet, so to speak, markets expect that it won’t be long before we are, and with that brings greater odds of an OCR hike and decreased downside economic risks.

“Separately, yesterday we shaved a few cents off our AUD and NZD forecasts. We still expect further NZD strength from here, but now see it levelling off at 0.72 by year-end (we previously had it reaching 0.75).”