ANZ Research discusses NZD/USD outlook and targets the pair at 0.72 by year-end.
"The New Zealand dollar has seen its fair share of surprises in recent weeks. A national COVID lockdown on the evening before a widely expect rate hike gave the RBNZ reason for pause. We expect this to be temporary however, with the RBNZ’s proximity to key inflation, employment and housing objectives reinforcing our expectations of two 25bp hikes by year-end. Overall, this places the RBNZ firmly at the forefront of the G10 policy cycle, providing a sustained tailwind for the currency," ANZ notes.
"Overall, we look for some stability in the NZD over the coming month, however have revised our year-end, and peak, target to 0.72USD," ANZ adds.