The New Zealand dollar slipped further below $0.68 on Tuesday, remaining under pressure from the rising US dollar and Treasury yields as traders braced for a hawkish surprise from the Federal Reserve. The US central bank is set to meet on Jan. 25-26, and although it is not expected to move rates, an increasing number of Fed officials indicated readiness for a more aggressive path towards policy normalization. Meanwhile, the Reserve Bank of New Zealand has already hiked interest rates twice to 0.75% last year and is widely expected to move to 1.0% at its Feb. 23 policy meeting amid persistent inflation and record low unemployment. A milder than expected third quarter economic contraction in New Zealand also solidified expectations of further central bank monetary tightening.
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 January of 2022.
The New Zealand Dollar is expected to trade at 0.67 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.66 in 12 months time.