ANZ now sees NZD/USD rising to 0.66 in Q1 2020
The firm raised its forecast for the kiwi, citing better economic data and a possible fiscal injecting as well as more muted capital requirements from the central bank, noted its Sydney-based head of FX research Daniel Been.
As such, they view NZD/USD moving to 0.66 in Q1 2020 and resting at 0.65 in Q3 2020. Both forecasts are revised higher from the 0.63 estimate previously.
They also noted that downside risks embedded in previous forecasts are unlikely to materialise, which suggests that the kiwi will probably bottom out around 0.64 than the 0.60 level previously expected.
On AUD/NZD, the firm sees the current range trade is likely to persist with any big upside moves capped until there is more evidence of a consumer recovery in Australia, or a fresh deterioration in New Zealand economic sentiment.
They target 1.03 for AUD/NZD in Q3 2020 before rising to 1.05 by the end of next year.
