ANZ on the kiwi $ - higher ahead during next year, in summary:
- expect the Kiwi to drift higher towards 0.74 over 2021
- largely a story of USD weakness
- improving global growth and easy monetary conditions in an environment where central banks will not want to be too hasty with policy normalisation
- We see the NZD and AUD both higher
- The NZD will remain a headwind to inflation and a headache to exporting and import-competing firms that the RBNZ may need to work against if the economic recovery does not maintain sufficient momentum. It’s difficult to swim against the global FX tide, but stemming further gains may be necessary, and monetary policy can help with that.
