NZD: Another Upgrade – BNZ

Jason Wong, Currency Strategist at BNZ, revises their NZD forecasts, seeing a stronger-for-longer profile.

Key Quotes

“Our year-end target is revised up 4 cents to USD 0.70, while our end-2017 target is revised down by 1 cent to USD 0.67. The NZD/AUD profile is little changed through to the end of 2017, within a range of AUD 0.93-0.96.

The outlook for US monetary policy remains the key swing factor. Our forecasts assume three Fed hikes by the end of 2017 (previously four). There is upside to NZD/USD if the Fed keeps policy on hold. Indeed, our projected profile would look quite different in a no-change world, seeing NZD/USD appreciate into the high 70s next year.”