As the NZ economy’s performance since covid has been impressive, providing fundamental support for NZD outperformance, economists at Westpac target NZD/USD 0.7200 by year-end. What’s more, the kiwi is forecast to surpass the 0.7500 level by mid-2021.
Key quotes
“The NZD/USD pair retains potential for slightly further upside near-term, targeting 0.7200 by year-end, although we caution it is technically stretched and in need of a correction. That aside, we expect to see the kiwi above 0.7500 by mid-2021.”
“Domestic NZ economic data remains buoyant (housing, retail spending and consumer sentiment recently), and this week’s events (HYEFU on December 16, GDP on December 17) should extend that theme.”
This article was originally published by Fxstreet.com. Read the original article here.