NZD / USD Analysis
The strong recovery of the declines in the NZD in mid-March reached the consolidation point and reached the summit below the 0.6790 level of last July. Patrick Bennett of CIBC Capital Markets expects the pair to trade at 0.67 at the end of the year.
“NZD earnings come from increases in global risk appetite, supported by policy support and a weaker USD environment. Unlike AUD, however, NZD was still cautious and received less support from RBNZ. This resulted in some underperforming against NZD and AUD. ”
“We revised our NZD estimates at higher levels, but we are careful not to predict earnings from current levels. Although the economic recovery is still in its infancy, the economic situation is complicated by the closure of borders and the weakening of tourism. As in Australia and elsewhere, domestic tourism is rising, but not enough to fill the gap. Business closing reports and reports that unemployment will remain high for a while underline economic challenges. “