Credit Agricole CIB Research discusses its NZD/USD outlook and targets.

"We are maintaining our upward path for NZD/USD during 2026 seeing that the RBNZ will be forced to raise rates as the second-round inflationary effects from the Middle East crisis emerge in H226. The net share of NZ businesses looking to pass on their higher costs to consumers is growing. The RBNZ is staying dovish longer than we expected, however, and growth is rebounding a little less strongly than we anticipated," CACIB notes.

"So, we are revising down our NZD/USD forecast profile with the rally starting from a lower base. We now forecast NZD/USD to reach 0.60 in Q2 (previously 0.62) and 0.63 by end-2026 (previously 0.65). We leave our NZD/USD outlook for 2027 unchanged," CACIB adds.