Earlier in the week a change of forecast from ANZ on the Reserve Bank of New Zealand :

ANZ New Zealand were forecasting a Reserve Bank of New Zealand 25bp cut in May this year

  • Not any longer, now projecting the RBNZ will keep the cash rate unchanged until the middle of 2021.

In addition to the change of this call ANZ have updated their kiwi $ forecasts

  • revising up our NZD forecasts, although we retain our downside bias through the end of 2020.
  • We think recent strength in the NZD reflects a correction in confidence, rather than a signal of sustained improvement in New Zealand's economy.
  • Volatility around the US election and renewed concerns over global growth are likely to be catalysts for weakness later in the year.

NZD/USD forecasts for this year:

  • March 0.67
  • June 0.66
  • September 0.66 r
  • December 0.65