BNZ/NAB FX Strategy Forecast Update
Our forecast for all G10 currencies have been revised to reflect our increased conviction that the recent weakening in the USD is ’for real’ and has a fair way to play out over the coming couple of years at least.
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NZD Corporate FX Update
The expected NZD/USD recovery is running slightly ahead of expectations and we nudge up our forecast track by 2 cents. After a strong run, we see near term consolidation ahead of a sustained 0.66-0.70 trading range developing later in the year. Our view on NZD crosses is not so overtly positive.
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NZD: Recovery ahead of schedule
While we have been cautious/uncertain about the near-term outlook for the NZD, we have been bullish on its prospects from mid-year onwards. It now looks like the expected recovery has begun a month or two earlier than expected and we revise up our forecasts.
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