The bullish outlook for the kiwi (NZD) against the US dollar remains intact, according to analysts at Credit Suisse. They forecast the NZD / USD at 0.75.
The underlying domestic drivers of the NZD’s strength are expected to persist. High growth and stimulus expectations remain at stake with a majority Labor government. Chinese food inflation and drought in Latin America strengthen the outlook for export prices. High risks to financial stability and the increase in the minimum wage in April 2021 limit the potential for dovish political surprises from the Reserve Bank of New Zealand. ”
“We remain on target at 0.75 on the NZD / USD pair.”