The New Zealand dollar held below $0.63 after being rejected around the $0.635 level, as hawkish remarks from US Federal Reserve policymakers hinting at further rate hikes to combat high inflation and mixed jobs data at home pressured the currency. New Zealand’s unemployment rate edged up to 3.3% in the second quarter of 2022, rising from a record low of 3.2% in the previous quarter and defying expectations for an improvement to 3.1%. Meanwhile, the report also showed a further pick up in annual wage growth to 3.4%, the fastest pace since 2008. Markets are now expecting another 50 basis point rate hike when the Reserve Bank of New Zealand meets on August 17, scaling back bets for a bigger 75 basis point increase that were driven by a hot Q2 inflation reading.
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 August of 2022.
The New Zealand Dollar is expected to trade at 0.62 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.59 in 12 months time.