The New Zealand dollar depreciated past $0.585 to its lowest levels since March 2020, weighed down by the US Federal Reserve’s aggressive plan to stamp out inflation that dampened the outlook for global economic growth and pressured commodities and other risk assets. The kiwi also weakened despite solid domestic data, with the New Zealand economy expanding 1.7% QoQ in the second quarter of 2022, rebounding sharply from a 0.2% contraction in the previous quarter and beating estimates for a 1% growth. Last month, the Reserve Bank of New Zealand delivered its seventh straight interest rate hike by a widely expected margin of 50 basis points to 3%, and signaled that it wanted to get rates to a restrictive level of 4% before pausing.
Historically, the New Zealand Dollar reached an all time high of 1.49 in October of 1973. New Zealand Dollar - data, forecasts, historical chart - was last updated on September of 2022.
The New Zealand Dollar is expected to trade at 0.56 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.54 in 12 months time.