ASB's Kiwi Dollar Barometer:
- Survey's exporters', importers' and importer/exporters' businesses with annual foreign exchange turnover of at least NZ$1 million
- Surveys businesses' expectations for the NZD/USD
- And business hedging plans
For December, the Key "take-outs"
- A clear turnaround in NZD sentiment was evident
Respondents significantly revised down their NZD/USD outlook
- Now expect the NZD/USD to average 65.9 cents by Q4 in 2018, which compares to a 12-month outlook of 75 US cents just three months ago
- Respondent groups have a similar outlook, irrespective of their trade focus or size of operation
An increase in hedging intentions, with the 84% of respondents planning to hedge exposures the highest in the close to four-year history of the survey
- There were differences by trade orientation, with the lower NZD reducing hedging intentions for exporters (52.4%), increasing intentions for importer/exporters (at 97%, the highest on record), with those for importers steady at around 90%.
- For those enterprises that plan to hedge, the cover is equivalent to 93.7% of FX exposures, the highest on record